Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The bias remained upbeat for Cardano on the lower time frames. Futures markets showed sideline participants and some selling pressure.
On Sunday, Bitcoin saw a pump to $25.1k and an immediate rejection back to the $24.2k area. Whether or not to trust Sunday pumps in crypto remains debatable, but this pump caused early leveraged buyers some pain.
Coinalyze data showed $11M in longs liquidated on the retracement of this move to $25.1k.
Read Cardano’s price forecast 2023-24
Cardano also saw a 2.4% increase late Sunday and then a 5% decline. Since then, the price has risen higher again. What can lower time frame traders expect in the coming week?
Late Sunday there was a liquidity hunt to the south
The 4-hour chart had a bullish market structure. On Feb. 14, ADA broke past the $0.37 resistance and changed the structure to bullish. Since then, the price has formed a series of higher lows. In the past hours of trading, ADA fell to a low of $0.389.
This was an even higher low. Reversing the H4 bias to bearish would require a 4-hour session close to $0.389. Meanwhile, the $0.414-$0.419 area has been a looming area of resistance.
The Awesome Oscillator showed that the bullish momentum was weakening due to the red bars on the histogram. However, the indicator remained above the zero level. The A/D line also hit higher lows last week. This suggested constant buying pressure.
Realistic or not, here is the market cap of ADA in terms of BTC
In recent days, trading volume has slowly declined. At the same time, ADA bulls were knocking on the doors of the Resistance for $0.42.
Given the bullish structure, it was likely that an upward move was imminent. A breakout above $0.42 and a retest could be a buying opportunity.
Market participants remain neutral over the weekend
Open Interest has fallen over the past week as ADA fought to climb above the $0.42 resistance.
This meant that a large proportion of participants stood on the sidelines waiting for the market to make a decision. Due to recent volatility, no more than $200,000 in long positions were liquidated. This suggested that the liquidity hunt did not trap many buyers.
Unlike the A/D line, the spot CVD line has been sinking lower and lower over the past two weeks, indicating selling pressure.
This post Cardano poised for further gains this week, but buyers will have to wait for this new test
was published first on https://ambcrypto.com/cardano-poised-for-further-gains-this-week-but-buyers-must-wait-for-this-retest/