Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ADA has a strongly bullish market structure.
- The move above $0.3 was a sign that further gains were likely, with the next major resistance zone being around $0.4.
Cardano [ADA] noted moderate on-chain performance in the third quarter of 2023. A drop in the number of active addresses and transactions caused network revenues to drop by 30%. Investors can take heart from this development activity was the highest among crypto projects in October.
Read Cardanos [ADA] Price forecast 2023-24
ADA’s price chart revealed a breakout past a lower time frame and a subsequent retest as support. This was $0.28, and the price was $0.322 at the time of writing.
The space between $0.3 and $0.39 could be exceeded quickly
Source: ADA/USDT on TradingView
The ADA’s one-day chart showed that the $0.3 level has been a key resistance level since June. It was temporarily reversed in support in mid-July, but the bears won in August.
In recent days, the $0.3 zone has turned back to support.
The market structure was bullish and the RSI reflected strong upward momentum with a value of 78. On-Balance Volume has also increased over the past three weeks.
In the North, there was a bearish order block (red) at $0.38 over a one-week period.
The $0.3-$0.32 was also a resistance zone, but the ADA bulls have shifted it to a demand zone. Therefore, the token could rise towards the aforementioned resistance zone in the next two weeks.
The heatmap of liquidation levels was in line with the order block and sentiment on the lower term remained bullish
Source: Hyblok
The liquidation levels heatmap highlighted the $0.34, $0.39 and $0.4 levels as places where a large number of liquidations could occur. The $0.42 level was also a point of interest. ADA had tested it several times in 2022 as support.
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Source: Coinalyse
The Open Interest (OI) has been trending higher over the past week, although it has seen large declines due to price volatility. Overall, the price and OI trended higher, indicating bullish sentiment among speculators.
The spot CVD also jumped higher in November to signal increased demand for ADA in the market. Therefore, the bias in the lower time frame was bullish and a move towards $0.38 was feasible.