Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- ADA maintains strongly bullish outlook for November.
- A pullback was likely, although it could be superficial due to the bullish pressure present.
Cardano [ADA] has performed extremely well in the market lately. It was one of the best performing crypto assets in the top ten by market cap, and registered gains of 32% to reach $0.3757 from $0.2845.
ADA fell to $0.35 in recent trading hours, but maintained its strong bullish outlook. AMBCrypto’s recent report highlighted the lack of resistance in the $0.3-$0.39 region. This idea was pretty close to what happened, with ADA hitting the $0.375 mark.
A weekly bearish order block saw the bulls pushed back for the time being
Source: ADA/USDT on TradingView
The $0.322 level reversed from resistance to support on November 3 and the ADA continued to rise. As previously noted, $0.322 and $0.386, above the $0.3 resistance, were the next significant resistance levels from a week ago.
The $0.354-$0.386 zone (red box) represented a bearish order block over a one-week period. Therefore, it was a stiff resistance zone that could take a while for the bulls to break through. The chances of a relapse were also good.
The Chaikin Money Flow (CMF) indicated a value of +0.38, highlighting the huge flow of capital into the market in the form of buyers. The RSI stood at 80 to reflect intense bullish momentum even on the daily chart.
Data from the chain showed that some metrics could be overheated
Source: Santiment
Daily active addresses have been slowly increasing since mid-September, indicating rising demand for the token. However, ADA’s average coin age has fallen over the past two weeks.
At the same time, the MVRV ratio shot up by a wide margin, reaching a high not seen since April 2023.
The average coin age suggested that addresses were moving their tokens and the MVRV outlined the possibility of profit taking by ADA holders. Development activity has fallen over the past two months, but long-term investors have no reason to worry about this dip.
Source: Hyblok
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The heatmap of liquidation levels with a 12-hour lookback period showed what the near-term price action could look like. There was a good liquidity position of $0.36, and another of $0.334.
Therefore, another jump to $0.36, followed by a dip towards $0.334, was possible in the next day or two. In the coming week, a retest of $0.322 could provide a buying opportunity.