Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
On the last dive, ADA tested another bullish breaker on the daily time frame. On-chain metrics leaned in favor of accumulation over distribution.
Cardano’s price action remained bullish on the higher timeframe charts, even though it saw a sharp drop in price a few hours before press time. Bitcoin failed to climb past the $31k resistance. At the time of writing, it was trading at $29.2k.
Read Cardanos [ADA] Price Forecast 2023-24
The 4-hour and lower timeframe price charts of many of the top 20 crypto assets have been bearish, and Cardano was no exception. But the daily timeframe chart could entice buyers with a good risk-to-reward buying opportunity.
The range breakout and subsequent retest may result in a rally
Source: ADA/USDT on TradingView
Cardano formed a range (yellow) on the charts that stretched from $0.24 to $0.42. The midpoint of this range at $0.33 (dotted orange line) has been a critical support and resistance level since October 2022.
In the past two weeks, the RSI rose above 70 and the OBV also saw a pullback after a major upward spike. This showed strong demand and optimistic sentiment behind ADA. With the RSI still above the neutral 50 and the price still in an uptrend, the bullish outlook looked encouraging.
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A bearish order block on the daily time frame was highlighted in cyan. It broke on April 13 and at the time of writing was retested as a bullish breaker. It has confluence with the $0.42 range highs making the entire $0.38-$0.42 an extremely strong demand zone.
The failure of this zone would become apparent with a daily session below $0.38. On the other hand, a $0.42 bounce would likely reach $0.52.
The MVRV ratio started to fall and the dormant circulation was not yet ringing any alarm bells
Source: Sentiment
The 90-day MVRV ratio reached close to January’s highs, but began to fall sharply in recent days. The average coin age has increased since April 7, which was a sign of network-wide accumulation.
In addition, the dormant circulation stat showed no noticeable spikes despite ADA’s rejection at $0.455. This showed that there was no intense selling pressure yet, which could be interpreted by bulls as “so far so good”. Development activity continued unabated, which should encourage buyers in the long term.
This post Cardano bulls remain strong despite short-term losses, here’s why
was published first on https://ambcrypto.com/cardano-bulls-remain-strong-despite-the-short-term-losses-heres-why/
