- Cardano hinted that a bullish structure was starting to form, but the downward trend had not yet been reversed.
- Buyers don’t need FOMO yet, but can wait for a pivot level to turn to support.
Cardano [ADA] prices increased by 35% from Monday July 8 to Saturday July 13. This rapid price increase can be attributed to an increase in purchases from large holders.
The long-term trend of the token was still bearish, but it was likely that the nearby psychological resistance level at $0.5 would be crucial in the coming days.
This would be the signal that the bearish trend has reversed
Source: ADA/USDT on TradingView
The 1-day price chart has climbed above a recent lower high of $0.4235, which is encouraging in the short term. It is a signal of a shift in market structure, but does not guarantee that an upward trend will follow.
The former low range and the support zone of $0.44-$0.475 formed a solid resistance zone. Additionally, there was a bearish order block (red) in the $0.46-$0.5 region. A daily session above $0.5 would be a signal that an uptrend may follow. Until then, buyers should remain on their guard.
The daily RSI shot past the neutral 50 mark, another signal that momentum is shifting bullish. The OBV climbed past the lows of two weeks ago, an indication that buying pressure was supporting recent gains.
In the short term, a retest of the $0.42-$0.43 area could provide a buying opportunity targeting $0.46-$0.5.
The accumulation of whales has increased over the past month
The 30-day change in ADA holdings distribution showed that addresses with tokens worth more than $10 million saw a 6.93% increase over the past month.
This reinforced the idea that whales were piling up during the steady price decline the token saw in recent weeks.
Read Cardanos [ADA] Price forecast 2024-25
Overall, it seemed likely that Cardano would initiate a move towards $0.5.
A breakout beyond that level would be a sign of a long-term uptrend that could extend to the $0.57 and $0.68 levels that were significant earlier this year.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.