Cardano’s ADA experienced a significant breakout in the past week, surging by a notable 43.3% from its lowest point on Monday to reach $0.4587. Recent data also indicated a 32% increase in whale transactions during this period, signaling a growing interest in Cardano and heightened demand.
The surge in whale activity highlights a surge in interest in Cardano and an increase in demand. It is important to note that trading volume has remained well above average throughout this bullish rally.
Benefiting from Cardano’s Dips
Since August, Cardano has been trading within a defined range spanning from $0.313 to $0.394. Towards the end of September, there was an attempt to break above the upper limit of the range, reaching $0.418, but faced resistance. A similar scenario was observed with Bitcoin, which struggled to surpass the $66.2k mark.
Following a decline, ADA dropped to the lower end of the range in late October. On November 4th, both the CMF and MACD indicated a lack of significant capital inflows and a bearish momentum.
However, following the recent surge, key indicators have experienced a shift. The CMF has risen to +0.26, its highest level since February. The MACD is displaying strong bullish momentum, and the OBV is on the cusp of surpassing previous highs from August.
Anticipating a Search for Liquidity before the Next Significant Movement
An analysis of the liquidation map identified levels of $0.422 and $0.44 as having a substantial concentration of liquidations, with higher cumulative short liquidations at $0.44. Any rebound to $0.44 is likely to attract more long positions, thereby increasing liquidity towards the downside.
Subsequently, a retracement towards $0.422 or lower could serve to absorb this liquidity before Cardano prepares for its next price action. Technical analysis suggests that a breakthrough above $0.457 is imminent, with long-term targets of $0.5 and $0.57 on the horizon.
Disclaimer: The views expressed in this article are solely the writer’s opinion and do not constitute financial, investment, or trading advice.