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- Cardano was clearly bullish in the short term
- A liquidity rush south was one scenario that could unfold, especially if BTC loses its bullish momentumS
Cardano [ADA] recently showed a positive funding rate and increased Open Interest (OI), indicating near-term bullish strength. This sentiment saw the ADA reach $0.298 before a pullback.
Read Cardanos [ADA] Price forecast 2023-24
The range within which ADA acted was respected just over a week ago. The confluence of support at the $0.24 area and that of Bitcoin [BTC] bullish, saw ADA heading towards $0.3.
Can Cardano bulls keep the run going?
Source: ADA/USDT on TradingView
The range (orange) extended from $0.238 to $0.28. On October 24, ADA crossed range highs alongside an uptrend on On-Balance Volume (OBV). The bullish four-hour market structure and rising OBV ensured buying volume was present and supported the price trend.
The Relative Strength Index (RSI) was also well above the neutral 50 mark, reflecting strong upward momentum. But is this enough to guarantee continued profits for the token? Every healthy trend has significant pullbacks, and such a trend could be on the horizon for ADA.
To the north, $0.3 was a notable resistance level on a higher time frame and also a psychological level that the bulls had to contend with. It was possible that the ADA would consolidate below this level before another push north.
Liquidation levels highlight an important level that could witness a hunt
Source: Hyblok
The Cumulative Liq Levels Delta had advanced deep into positive territory. It conveyed the idea that bulls were in a riskier position than bears as things stood. The liq levels showed several long liquidations worth over $2 million in the $0.268-$0.272 range.
Source: Coinalyse
Are we going to have such a dip? Coinalyze data showed that this could be the case. The OI has been tepid over the past two days, indicating a market whose short-term bullish sentiment has waned.
How much is 1, 1o or 100 ADA worth today?
More importantly, the Cumulative Volume Delta (CVD) in the spot market fell, a worrying factor for the bulls. An increase in selling pressure could cause the ADA to drop to $0.27 or lower. BTC’s volatility or even a drop to $30,000 could result in ADA reversing much of its recent gains.