Cardano (ADA) showed a 19.16% increase between February 7-11. Since that time, the upward price movement has stopped as buyers encountered a thick set of resistance. Despite the rise of Bitcoin (BTC), the buying volume behind ADA has not been able to keep up.
Momentum in Cardano’s Market
Crypto currency analysts have noted that the $0.54-$0.56 region is predicted to have a significant amount of liquidation level. When combined with factors resulting from ADA’s price movement, a reversal of the downward trend could be possible. The 12-hour chart shows Cardano with a bullish market structure.
The mentioned turnaround occurred earlier this month when prices rose above $0.5205. However, the 12-hour sell block in the $0.56 region came with the existence of a fair value gap at $0.55. The Relative Strength Index (RSI) is moving above the neutral 50, which could support the bullish market structure. Momentum pointed upwards, but the OBV was in a steady downtrend throughout 2024.
The Price Outlook for ADA
This situation could mean that despite defending the $0.45 support region, the buying pressure for ADA has been steadily weakening. Bulls might need to push Cardano above $0.578 to signal the potential to reach $0.7. Until this scenario unfolds, investors might try to profit by shorting ADA, targeting the $0.48 support region.
The open interest chart showed an uptrend along with the prices from the 7th to the 11th position. This indicated that speculators were willing to take long positions. However, this situation changed in the last 24 hours. On the other hand, the spot CVD chart failed to create an uptrend. The spot buying activity for the cryptocurrency, like the OBV, also remained quiet in lower time frames. The lack of demand could mean that the possibility of rejection from the $0.55 region continues. Moreover, experts believe another move to the $0.48 region is more likely.
