- Cardano has an optimistic market structure.
- It has moved within its previous range and is expected to rise further.
Cardano (ADA) fell below its six-week range on January 18th. It retested the $0.453 support level and bounced back energetically. The low of the $0.51 range has once again flipped for support, while liquidity around $0.6 will likely pull the price forward.
A recent AMBCrypto report highlighted the high probability of ADA recovery. This view was borne out by the collapse of the optimistic market structure.
Another resistance/support reversal encourages buyers.
A move above $0.52 triggered a bullish reversal in the market structure on the 12-hour chart. In addition, it surpassed the resistance level of $0.524 and turned into support.
Together, they point to an optimistic bias toward the ADA going forward.
Source: ADA/USDT on TradingView
RSI rose back above the neutral line of 50, signaling a change in momentum. OBV, which had been declining since mid-December, rose slightly. However, the indicator is not yet in a firm upward trend.
This shows that despite the strong rise last week, the buying trend was only slightly stronger. The current $0.524 level is support, so OBV is expected to rise higher.
Can ADA surpass $0.6?
The price action chart shows an imbalance (white box) and a bearish order block (turquoise box) overlapping in the $0.56-$0.57 area. This meant it was a tight resistance zone that could take the bulls some time to break through.
Source: Hiblock
AMBCrypto analyzed Hyblock’s expected liquidation level heatmap data. This data was consistent with the price action results. First, ADA broke into the $0.524-$0.536 area and swept up large liquidity.
As the uptrend solidifies, a slight retracement towards $0.51 may follow. The liquidity heatmap shows $0.554-$0.564. The $0.6 and $0.62 areas are likely to drive the ADA price down on their own.
Read Cardano (ADA) Price Prediction for 2024-25
In comparison, the level of clearing in the South was insufficient. Therefore, an increase is much more likely than a decline to $0.46-$0.47.
If the bulls can extend the $0.57 resistance, they are expected to reach the $0.62 level. This is because it represents a local high where a lot of liquidity is likely to exist.
Disclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.