Cardano approaches $0.40: Can ADA rally past this level?

• ADA was showing neutral momentum, with the RSI at 45.84 and nearing key resistance at $0.40.
• Market sentiment remained cautious, with steady Open Interest indicating low volatility.

Cardano [ADA] is capturing the attention of investors, as both crowd and smart money sentiment reflect a strong bullish outlook. At press time, ADA was trading at $0.3564, up 0.94% over the past day. 

With the $0.40 resistance looming, traders are eager to know whether Cardano has what it takes to break through this key level and start a potential bullish rally.

Can ADA build enough momentum for a breakout?

ADA’s technical analysis offers mixed signals. The RSI, at 45.84 at press time, showed that ADA was in a neutral zone, neither overbought nor oversold.

Therefore, there is room for upward movement if buying pressure intensifies. 

Additionally, the MACD is nearing a zero-cross, indicating a possible shift in momentum.

However, this could also signal consolidation if buyers fail to step in, leaving ADA in a cautious state as it hovers below resistance.

Source: TradingView

On-chain signals: Is ADA building strength?

In terms of on-chain data, Cardano was showing modest but positive signals. Net network growth was up 0.09%, and 1.40% of ADA holders were in profit, as indicated by the “in the money” metric.

Additionally, ADA’s concentration metric was steady, with no significant changes in large holder positions. 

However, large transactions have decreased slightly by 0.41%, signaling that institutional investors were taking a cautious approach.

Consequently, while the fundamentals suggested strength, they are not pointing to a major rally yet.

Source: IntotheBlock

Open Interest: Steady growth, cautious optimism

Open Interest for ADA has increased by 0.71%, now standing at $216.17M. This steady rise in interest suggests that traders are cautiously optimistic about ADA’s potential to break the $0.40 resistance. 

Additionally, the gradual increase in Open Interest indicates growing participation without overwhelming bullish momentum. Therefore, ADA seems poised for a move, but traders are waiting for stronger signals.

Source: Coinglass

ADA liquidations: Calm before the storm?

The total liquidation data reflected a balanced market, with $17.6K in short liquidations and $4.97K in long liquidations.

This suggested minimal market disruptions, implying that traders were not aggressively betting on price movements in either direction. Therefore, the market remained calm, waiting for a decisive push.

Source: Coinglass

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

Is a breakout likely?

Cardano’s indicators show potential for a breakout, but the market is not there yet.

While the technical and on-chain data are pointing in the right direction, the cautious rise in Open Interest and low liquidation figures suggest that Cardano may need more bullish momentum to cross the $0.40 resistance.