Cardano (ADA) is a blockchain-based platform that allows developers to create decentralized applications (dApps) and smart contracts. Created by Charles Hoskinson, one of the co-founders of Ethereum to address some of the scalability and interoperability issues facing existing blockchain networks.
Given the potential of the asset, ADA has gained a lot of attention in the crypto community over the years. However, lately, many investors and traders have wondered about the crypto’s next move amid uncertainty in the crypto market.
Cardano (ADA) Possible Bullish Breakout
In the last week, Cardano (ADA) has seen significant bearish price action. The asset collapsed in the last 7 days with the the price dropped almost 20%. This downtrend can be attributed to several factors, including the ongoing downtrend in the market.
However, despite the downtrend, ADA may be poised for a bullish breakout, according to the asset’s price chart. On the 1-day time frame, Cardano has just entered a block of orders indicating a probable reversal (up movement).
Cardano (ADA) price touches an order block on the 1-day chart. Source: ADA/USDT on TradingView.com
A block of orders is basically the last bullish or bearish candlestick before the formation of a significant movement in the market. Refers to a price level at which a large amount of purchase or sell orders cluster, creating a significant level of support or resistance.
Large institutional traders, hedge funds, or other market participants that place large buy or sell orders at a specific price level create block orders. An order block identified at a certain price level can cause the price to bounce off that level and move in the opposite direction.
In this case, ADA could form a upward investment as the asset takes advantage of block orders in the region of $0.37. Although it is not clear when ADA will execute the reversal, it could happen soon given the accuracy on the chart.
Meanwhile, at the time of writing, ADA bears appear exhausted as the asset is only down 0.2% in the past 24 hours. ADA is currently trading at $0.38, slightly above the order block price level identified above.
If ADA continues in the opposite direction to the rise and does not invalidate the marked order block. The ADA price could reach important highs such as the area of $0.46.
Fundamentals that could contribute to breaking ADA
Technicalities aside, Cardano also has some fundamentals that could be part of its potential breakout. An example is the Snowmantastic NFT project transition from the Ethereum network to the Cardano network.
Snowmantastic has collaborated with more than 200 projects in the industry. Its transition to Cardano could attract a large number of investors to this ecosystem and thus increase the price of the native token in the long term.
On the Cardano network, we can already see a similar scenario where the accumulation of ADA is on the rise. according to a graphic displayed Per popular cryptanalyst, Ali Chart, on April 1, the number of large transactions on Cardano reached 4,000.
Number of large transactions on the Cardano Network. | Fountain: Ali’s letter
By April 13, transactions climbed closer to 5,000. The analyst noted,
Large ADA transactions are on the rise, suggesting Cardano network activity is heating up as institutional players and whales make their moves. This is a bullish sign supporting the ADA uptrend!
Featured Image from iStock.com, Chart from TradingView
This post Cardano (ADA) Could Be Poised for a Bullish Breakout, Here’s Why
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