Following a failed breakout earlier this month, Cardano [ADA] found itself back at the midpoint of its two-month trading range. The pullback was triggered by a stall in Bitcoin [BTC] momentum around the $66.5k level.
Despite Bitcoin’s drop to $60k, Cardano maintained its positive trend on the daily chart, inching closer to a potential shift. Let’s explore what traders and investors might anticipate from this altcoin.
Market Sentiment Uncertainty Leaves Room for Price Movement in Either Direction
Cardano retraced to $0.325 after failing to break through the $0.415 resistance level. Analyzing the higher timeframes indicates a bearish trend for ADA, though the recent consolidation under $0.4 suggests a possible trend reversal.
While the unsuccessful breakout above $0.41 revealed market hesitance towards a significant rally, the drop to the mid-range level represents an appealing buying opportunity for long-term investors.
Despite neutral momentum shown by the Awesome Oscillator and negligible capital flows indicated by the CMF, swing traders should approach with caution. With $0.342 holding significance in the daily structure, an upward movement is slightly favored in the near future.
Speculators Watching from the Sidelines Amid Cardano’s Price Volatility
Cardano’s price action has been turbulent over the past ten days, aligning with a short-term bearish outlook since September 27th.
The spot CVD continues to decline, showcasing selling pressure in the market. Open Interest has hovered near $170 million, signaling speculators’ reluctance to engage due to ADA’s uncertainty post-rejection at $0.416.
Disclaimer: The views expressed are the author’s personal opinion and do not constitute financial, investment, trading, or any other form of advice.