Having experienced a 200% surge in November, the momentum of Cardano (ADA) has started to stabilize. Nevertheless, there are indications that it could potentially surge towards $1.5.
Looking at the 4-hour chart, there is evidence of an ascending triangle formation which typically indicates a bullish trend continuation if the overall positive market sentiment persists in the coming days.
Potential Achievement of $1.5 by ADA
Historically, a breakout from ascending triangles often results in an increase in price equivalent to the triangle’s height (highlighted in white). Should this pattern play out, ADA could rise to $1.45, representing a potential gain of 25%.
Technical indicators on the chart, such as CMF (Chaikin Money Flow) and OBV (On Balance Volume), were observed to be above their average levels, suggesting that the bullish momentum for ADA could still aim for $1.5.
However, a dip below the triangle formation could nullify the bullish forecast, leading to a possible retreat to the bearish order block (OB) and the support level at $0.9 (highlighted in cyan).
Zooming out to the weekly charts, ADA seems to be retracing back to price levels seen in 2021. If history repeats itself, reaching a high of $1.5 could be a plausible scenario within the upcoming days or weeks.
Significant Levels of Interest
Analyses of liquidation maps suggest the existence of substantial long-leveraged positions around $1 (bright oranges).
Moreover, there appears to be a concentration of liquidity from short-sellers at $1.2 and above. It is worth noting that liquidity zones often influence market makers in shaping price movements.
In essence, market makers might strategically respond to these liquidity zones, thus influencing the direction of the price action.
Hence, there is a possibility that the price could retrace to $1.0 before experiencing an uptrend beyond $1.2. However, a breach below $1 might indicate a shift towards a bearish market sentiment for the altcoin.
Disclaimer: The information provided is the writer’s opinion and should not be considered as financial, investment, or trading advice.