Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Cardano saw its market structure shift bullishly after recent gains
- Another move higher to $0.28 was likely, but a breakout past it might not occur during this move
Cardano [ADA] showed promising signs of bullishness. The uptick began on 25 September and rallied 12% in a week measured from bottom to top. ADA saw a retracement in recent hours but retained its bullish outlook.
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A price report from AMBCrypto dated 25 September highlighted a range formation and detailed the importance of the $0.239 support. Evidence from the volume indicators showed buying pressure was dwindling back then, but the bulls have been able to turn things around and defend the $0.24 level with vigor.
The mid-range level was flipped to support to illuminate the next move for Cardano
Source: ADA/USDT on TradingView
The aforementioned range extended from $0.238 to $0.28, and its mid-range level was at $0.259. At the time of writing, ADA was trading at $0.2596 and had flipped the mid-range resistance to support over the past two days.
Moreover, the former bearish order block (cyan) was also retested as a bullish breaker block after the rally. In addition, the bearish market structure on the one-day chart was broken after the move above the recent lower high at $0.258, posted on 19 September.
The Relative Strength Index (RSI) clambered back above neutral 50 and the On-Balance Volume (OBV) saw an uptick. Whether the demand will be enough to fuel a rally remains to be seen. Additionally, the price action evidence pointed toward a move to $0.28, and buyers could look for a lower timeframe bullish structure break to enter long positions targeting the range high.
The huge spike in dormant circulation was spotted- does it highlight weak holders?
Source: Santiment
The development activity has trended higher since August despite the price trend and is an encouraging sign for long-term holders. However, the dormant circulation metric didn’t the massive surge in dormant circulation represented 567.8 million ADA being transferred on 28 September that had previously been idle.
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This happened near the range lows and suggested long-term holders succumbed to panic and fear. Furthermore, the Market Value to Realized Value (MVRV) ratio remained negative and signaled the token was undervalued.
