- 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.
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.
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