Cardano [ADA] has experienced a notable uptick in recent trading. Presently, ADA is priced at $0.3409, marking a 2.68% increase over the last 24 hours and a 4.44% surge in the past week.
Vital support level remains robust
Currently, ADA is gaining momentum from a key support level at $0.3172, which has served as a strong psychological support level for a number of weeks. Chart analysis shows Cardano prices consolidating within an ascending triangle pattern.
At the moment, ADA is nearing a descending trendline tracing back to earlier in 2024.
Despite multiple attempts, Cardano has yet to break above this resistance level. Nevertheless, a successful breakout above this trendline, alongside the established support level, could signify a bullish reversal.
Source: Tradingview
Price charts indicate a distinct descending trendline marked by a series of lower highs. However, the stochastic Relative Strength Index (RSI) exhibits a bullish crossover, with the RSI climbing from oversold levels.
This bullish divergence might signal a potential short-term uptrend as momentum shifts in favor of the bulls.
Positive signs from Cardano exchange net flow
Analysis of exchange net flow data by Coinglass reveals a dominance of Cardano outflows over inflows. This trend suggests that ADA investors are moving their tokens off exchanges and into cold storage.
Typically, this behavior indicates a bullish sentiment, reflecting a reduced inclination to sell in the near future.
Source: Coinglass
Reduced liquidation pressure propels Cardano towards an uptrend
Examination of liquidation heatmap data by Coinglass emphasizes a significant zone of liquidation pressure in the $0.34–$0.36 range.
This observation implies that short positions are under pressure, potentially driving upward price movement as bears are compelled to close their positions.
Source: Coinglass
Bulls gaining an edge over bears
Additionally, the Cardano long-short ratio presently favors long positions. The long-short ratio has spiked to 1.31, indicating a bullish stance in the market.
Source: Coinglass
Considering the positive signals and metrics mentioned above, Cardano is on the cusp of a potential bullish breakout provided it maintains the $0.3172 support level and breaks through the overhead resistance barriers.