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. 

Is your portfolio green? Check out the ADA Profit Calculator 

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

Source: ADA/USDT on TradingView

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…

Source: Coinalyze

According to Coinalyze, the CVD (Cumulative Volume Delta) steadily rose on 18 August, Friday, indicating buyers gained little market control from the same day. 

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

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.