- Cardano has a bullish market structure
- It moved within the previous range and is expected to rally higher
Cardano [ADA] fell below a six-week range on the 18th of January. It retested the $0.453 support level and has rebounded with vigor. The $0.51 range lows were flipped to support once again, and the liquidity near $0.6 should attract prices toward it.
A recent AMBCrypto report highlighted that the chances of an ADA recovery were good. This view has been vindicated with the bullish market structure break.
Another resistance/support flip encourages the buyers
The move above $0.52 flipped the market structure bullishly on the 12-hour chart. Moreover, the move above the $0.524 resistance saw the level turned into a support.
Together, they pointed toward a bullish bias for ADA in the coming days.
Source: ADA/USDT on TradingView
The RSI climbed back above neutral 50 to signal a shift in momentum. The OBV, which has trended downward since mid-December, saw a minor uptick. Yet the indicator was not yet in a firm uptrend.
This showed that buying volume has been only slightly stronger despite the strong gains of the past week. Since the $0.524 level is a support now, the OBV is expected to climb higher.
Can ADA rally past $0.6?
The price action chart showed an imbalance (white box) and a bearish order block (cyan box) overlap at the $0.56-$0.57 zone. This meant that it was a stern zone of resistance that could take the bulls some time to break past.
Source: Hyblock
AMBCrypto analyzed the estimated liquidation levels heatmap data from Hyblock. This data agreed with the findings from the price action. Firstly, ADA has swept a major pocket of liquidity by venturing into the $0.524-$0.536 zone.
This could be followed by a minor retracement toward $0.51 as the bulls consolidate their position. The liquidity heatmap showed that the $0.554-$0.564. the $0.6, and the $0.62 regions were likely to pull ADA prices toward themselves.
Read Cardano’s [ADA] Price Prediction 2024-25
By comparison, the liquidation levels to the south were scant. Therefore a move upward is much more likely than a move downward to $0.46-$0.47.
If the bulls can scale the $0.57 resistance, the $0.62 level is expected to be reached. This is because it represents a local high where a large amount of liquidity would likely be present.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
