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Cardano [ADA] ready for a blast off past $0.42, but only if…

2min Read

The daily timeframe showed the bearish order block at $0.4 was flipped to a bullish breaker block after the breakout past $0.42, and the H4 charts also suggested gains were likely.

Cardano ready for a blast off past $0.42, but only if...

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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.

  • The daily and four-hour timeframes showed a bullish bias.
  • Demand drove the bounce from $0.38, but Bitcoin could ruin the bullish sentiment behind ADA.

Cardano [ADA] saw large price swings over the past twenty days. The move upward from $0.377 to $0.458 has been fully retraced in the past two weeks. Each of these moves is close to 20% on the price charts and is hefty on its own.


Read Cardano’s [ADA] Price Prediction 2023-24


Bitcoin [BTC] was able to defend both the $27.8k and $28.8k support levels over the past few days, which suggested it could move higher once more. Combined with Cardano’s higher timeframe bias, traders can anticipate gains for ADA.

The breakout past the higher timeframe range was encouraging

Cardano ready for a blast off past $0.42, but only if...

Source: ADA/USDT on TradingView

The blue line highlighted the lower high that Cardano formed on the charts after it fell beneath the $0.42 level. Over the past two days, ADA bulls could force prices above this lower high. This shifted the market structure from bearish to bullish.

The RSI also moved back above the neutral 50 mark to indicate bullish momentum. The OBV has pushed higher over the past four days, which showed strong buying pressure recently. Another strong indication of bullishness was the higher timeframe price action.

A look at the daily timeframe showed two things. First, the presence of a range that extended from $0.24 to $0.42. Second was the bearish order block formed in mid-February, which was flipped to a bullish breaker block after the breakout past $0.42.

Therefore, the lower timeframe retracement to $0.4 was likely to be followed by an ADA surge. To the north, notable resistance levels lie at $0.44 and $0.485.


Is your portfolio green? Check the Cardano Profit Calculator


The strong rebound in OI highlighted bullishness

Cardano ready for a blast off past $0.42, but only if...

Source: Coinalyze

The Open Interest fell from $186 million to $162 million on 26 April, when ADA fell from $0.42 to $0.38. However, since then, both the price and the OI have recovered and pushed higher again. This showed speculators were bullish once more.

Liquidation data from Coinglass showed that although the sentiment was bullish, it was the long positions that suffered more pain in recent days. The aforementioned move down from $0.42 was accompanied by nearly $1 million worth of long positions liquidated within a span of 8 hours.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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