- The key is to gauge short-term strength by looking at volume and speculation.
- Cardano showed potential on the 1-day chart, particularly with Bitcoin set to rise.
Cardano [ADA] Bulls managed to vault past $0.75 and claim it as their support. The 1-day and 4-hour structures shifted bullishly.
Bitcoin [BTC] The price has been hovering around $107k for just over a week now and is threatening to break out beyond the all-time $108.7k high.
Source: CoinGlass
The market could be electrified by this impetus Cardano. The Long/Short was 0.97 at the time of press. Takers’ buy volumes were not high enough to show short-term confidence.
Long/shorts data revealed that most accounts had a long position, although their positions could be very small.
The next goal is $1
Source: ADA/USDT at TradingView
Cardano’s price fell to the low for a long-term trading range of $0.69. However, this support level was quickly reclaimed by Cardano in May. After this, the ADA bears maintained their recovery.
It was significant that the level of $0.756 had been breached. This was a pivotal high set in March, when the price dropped from $1.15 per dollar to $0.55.
Buyers were encouraged by the recent retest of support after a move above these highs.
The substructure of the swing market was bullish. Cardano is therefore ready for a rally. In recent weeks, the OBV trend has shown a significant increase in demand.
The RSI retested the neutral 50 support and seemed to be moving higher. If the ADA prices can move higher, this would signal a movement towards the middle-range resistance of $0.9.
Source: ADA/USDT at TradingView
On the 4-hour chart the swing structure also was bullish. Significant swing points occurred at $0.648 in early May and a swing-high at $0.84 just a few weeks later.
The bullish structure remained intact since ADA managed to recover $0.72.
Also, the resistance of the descending trendline was broken. This also broke the lower high from $0.743.
The OBV was rising higher and the RSI had risen above neutral 50, signaling that momentum has turned bullish.
Cardano’s outlook is therefore bullish from multiple angles. For prices to rise, a sustained demand is needed.
Bitcoin traders should also be on the lookout for any increased volumes.
Disclaimer: All information provided is the opinion and solely of the writer. The author does not provide any financial or investment advice.
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Source: ambcrypto.com
