Cardano [ADA] is preparing for a potential robust price recovery post its recent period of heavy selling in the market.
Despite encountering selling pressure, ADA’s recent upward movement within an ascending triangle pattern indicates a shift in market sentiment as buyers become more active.
The altcoin’s consistent bullish trend and increased market participation hint at a likely breakout above the crucial $0.83 resistance level.
Currently, ADA is trading at $0.7809, marking a 1.08% price increase despite a drop in trading volume over the past 24 hours, as per CoinMarketCap data.
Market Sentiment and On-Chain Indicators
In the last 24 hours, Cardano has observed a 2.09% increase in 24-hour Open Interest and a rise in the long-short ratio to a neutral level (0.92), indicating traders are opening new positions, as shown by Coinglass data.
Moreover, ADA’s Weighted Funding Rate has turned positive due to the growing demand for long positions.
According to data from IntoTheBlock, the bid-ask volume ratio is at 68.09%, with predominantly bullish signals from exchanges, indicating investor accumulation as the chances of ADA’s breakout rise.
Over the last 72 hours, Cardano’s network has witnessed a gradual increase in active addresses, showcasing enhanced market participation, aligning with ADA’s bullish trend on the hourly chart.
Cardano’s Rebound and Potential Upsurge
Examining Cardano’s technical configuration, ADA has been within an ascending triangle pattern, forming higher lows, signaling accumulation.
If the bullish momentum persists, a potential breakout above the critical $0.83 resistance level could occur.
With strong buying pressure, ADA might breach the $0.90 resistance zone before targeting the psychological level of $1.00.
Future Prospects for Cardano
ADA’s Exponential Moving Average (EMA 200) at $0.7301 and Simple Moving Average (SMA 200) at $0.6547 are currently lower than its current price, indicating buying opportunities and affirming its long-term bullish trend based on TradingView data.
The Relative Strength Index (RSI) is at 44, hinting that Cardano is slightly oversold, with the asset recovering from a bearish phase.
Therefore, Cardano could experience additional buying pressure in the coming days, propelling its bullish momentum and increasing the likelihood of a breakout.