Cardano aims to reclaim $0.28 – Is it feasible?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- ADA lost over 10% between 13 -17 August.
- Buyers gained little control but faced overhead hurdles.
Cardano [ADA] tanked over 10% on the third week of August (13-20 August). On 17 August alone, the altcoin shed 7% and hit $0.24, according to the charting platform, TradingView.
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However, Cardano’s recovery was recorded from 18 August. But there were overhead hurdles.
In the meantime, Bitcoin [BTC] eased at $25k and has seen two daily candlestick sessions close above $26k. A weekly candlestick close above $26k could confirm bullish intent above $26k from 21 August.
ADA’s overhead hurdles
ADA’s extended drop on 18 August eased at $0.24 as BTC steadied near $26k. The drop below $0.2756, a previous resistance level in the second half of June, meant ADA reversed June and July gains.
An H4 bearish order block of $0.267 – $0.274 (red) exists below the previous $0.2756 resistance and has been validated once. At the time of writing, price action hit the bearish OB again but eased to a price imbalance and FVG (fair value gap) of $0.265 – $0.267 (white).
The FVG could be a bullish and buying zone. But bulls can only have an edge if they push above the double roadblock of the H4 bearish OB and the $0.2756 resistance. If so, the next targets will be $0.290 and $0.300.
However, the RSI didn’t cross above the 50 neutral mark despite the slight uptick in On Balance Volume (OBV). It shows that the little demand wasn’t a strong enough buying pressure to confirm buyers’ edge as of the time of writing.
Ergo, a reversal at the double roadblock could set ADA the immediate support of $0.26.
Buyers gained market control, but…
According to Coinalyze, the CVD (Cumulative Volume Delta) steadily rose on 18 August, Friday, indicating buyers gained little market control from the same day.
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But Open Interest (OI) rates didn’t register similar enthusiasm. After dropping from $120 million in mid-August, the OI dipped below $100 million on 17 August (Thursday).
It fluctuated between $89 million and $95 million between Thursday and the time of writing. The trend illustrates stagnant demand for ADA in the derivatives market that could make the double hurdle more difficult for the bulls.