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- Cardano has a bullish structure on the day.
- The breakout into the distance seemed to fail and the bulls had to act quickly to resolve this.
Cardano [ADA] saw quick gains last week. From September 23 to 27, ADA made a 20% gain and almost retested the $0.418 resistance level. The technical indicators were bullish.
A big rally seemed to be coming, and the increase in the number of active addresses showed that organic demand was likely to increase. The Bitcoin [BTC] The dip at the $66k resistance negatively impacted Cardano prices.
The long-term Cardano price forecast was bullish, but the inability to regain the near retracement level was a worrying development.
The range breakout falters for a moment
Source: ADA/USDT on TradingView
Based on the downward price movement in July and early August, a series of Fibonacci retracement levels were plotted.
This showed that the 78.6% retracement level at $0.418 is crucial for the Cardano bulls to gain back before the long-term trend can turn bullish.
Meanwhile, a range has formed between $0.312 and $0.393 over the past two months. Last week’s bullish sentiment pushed the ADA above the range highs, but not past the Fib retracement level at $0.418.
There has been a 7% price drop over the past three days. However, the CMF was still above +0.05, indicating significant capital flow into the market. The daily RSI also indicated bullish momentum.
Therefore, it is possible that the $0.387 level could serve as short-term support before the next move upward.
Cardano price prediction after $0.39 liquidity
There was a large amount of liquidity around the $0.39 level that Cardano has reached in recent trading hours. It is likely that the price will reverse bullishly and head towards the $0.408 zone.
Read Cardanos [ADA] Price forecast 2024-25
However, the momentum around BTC has been bearish in the short term, and this could drag Cardano prices lower later this week.
Therefore, traders should be cautious and consider a possible rejection from the highs in the range.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer