Cardano: Is ADA’s 4.6% pump the start of a bullish rally?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Selling pressure eased at key support level with bulls taking advantage to rebound.
- Buyers looked to kickstart a sustained price reversal with a 51.43% share of open positions on the long/short ratio.
Despite Cardano [ADA] sinking to its June/August lows over the past 48 hours, the buying pressure at the $0.239 support level spurred bulls back to life. As of press time, ADA was trading at $0.249, representing a 4.6% price bounce.
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With Bitcoin [BTC] slowly climbing back above $26k, more gains could lie ahead for ADA bulls.
ADA rebounds after intense selling pressure
A recent price report highlighted the deep price slump ADA experienced from the $0.376 price zone. After hitting the August low of $0.239, buyers rallied strongly to register decent gains.
A look at the 12-hour timeframe showed that the bullish rally caused the Relative Strength Index (RSI) to jump from a reading of 29 to 42. This signaled that the buying pressure was rising significantly.
Similarly, the Chaikin Money Flow (CMF) flipped positive to hint at decent capital inflows.
Based on the short-term rally, buyers can target profits at $0.28 to $0.3 ( lower low of bearish dip). However, if BTC drops again, sellers can break below the support level with the $0.2 price level within reach.
Speculators reacted positively to bullish bounce
How much are 1,10,100 ADAs worth today?
The exchange long/short ratio revealed the optimistic outlook by traders in the futures market in relation to a price reversal for ADA. The four-hour timeframe showed that longs edged ahead with a 51.43% share of the open contracts. This could accelerate ADA’s soft bounce to the $0.28 to $0.3 price level.