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ADA’s recovery wavers near $0.3950 – Here are key levels to consider

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Cardano [ADA] price whipsaws post-Fed rate hike – Will the future market’s bearish bias sink it lower?

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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

  • Recovery stalled near moving averages. 
  • The overall futures market was overly bearish.

After the Fed rate hike, the crypto market saw some choppiness. By the time of writing, Cardano [ADA] struggled to go beyond $0.3950. Similarly, Bitcoin [BTC] had surged to $29k only to fall back to $28k within hours on 4 May. 

Is your portfolio green? Check ADA Profit Calculator 

On the other hand, the futures market was extremely bearish. About $14 million worth of long positions have been wrecked in the past four hours, Coinglass data revealed. 

In the same period, only $1.7 million worth of short positions were liquidated – reinforcing the short-term bearish pressure. The downward pressure could push ADA to these levels. 

Can sellers fill in the FVG gap?

Source: ADA/USDT on TradingView

During ADA’s rally on 4 May, it left an imbalance and Fair Value Gap (FVG) within $0.386 – $0.390 (white). At press time, price action faced rejection at the moving averages (50-EMA and 200-EMA). The drop headed to the FVG. 

If the FVG is filled and the price rebound from this level, ADA/USDT pair could attempt to clear the hurdle near the moving averages ($0.3950) and target the bearish order block (OB) at $0.4114. 

Conversely, if the price falls below FVG and retests the $0.3750 support, the pair could also rally to the bearish OB at $0.4114 if the $0.3750 support remains steady. The latter will offer the best risk ratio compared to the former. 

But a close below $0.3750 will invalidate the above bullish bias. Such a move could sink ADA to $0.3490 or $0.3400. 

Meanwhile, the Relative Strength Index (RSI) hovered near the 50-mark, reiterating a neutral position – the price could go in either direction. But the OBV had an uptick – an indication of increased demand in the past few hours. 

Sellers had slight leverage

Source: Coinglass

How much are 1,10,100 ADAs worth today? 

Based on Coinglass’s exchange long/short ratio, shorts dominated at 51.09% while longs trailed at 48.91%. It means sellers had the upper hand and could drive ADA’s price down. 

Similarly, over $73k worth of long positions were liquidated in the past four hours, while shorts suffered zero casualties. It paints a short-term bearish outlook that could sink ADA lower. However, sellers must clear the FVG zone of $0.386 – $0.390 to gain leverage.

Source: Coinglass


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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