- The price of ADA showed a bullish ascending triangle pattern on the 4-hour chart
- A significant liquidity pool at $1.0 suggested ADA could slide before rising again
After a 200% increase in November, Cardano [ADA] is cooling down. However, it could still rise towards $1.5.
On the 4-hour chart, price action even showed an ascending triangle: a bullish formation that could be validated if overall bullish market sentiment continues in the coming days.
ADA’s outlook of $1.5
Source: ADA/USDT, TradingView
In most cases, a breakout rally from ascending triangles leads to an upward swing comparable to the height of the triangle (white zone). If the patterns hold, it would push the ADA to $1.45 – a potential gain of 25%.
The technical chart indicators, CMF (Chaikin Money Flow) and OBV (On Balance Volume), were above average at the time of writing, indicating that the ADA bull still had a chance to hit $1.5.
However, a decline below the triangle would invalidate the bullish projection. In such a case, the pullback could extend to the bearish order block (OB) and provide support at $0.9 (cyan).
However, when we zoomed out on the weekly charts, ADA appeared to be back in the 2021 price range. If the pattern repeats, a range high of $1.5 could be achievable within the coming days or weeks.
Source: ADA/USDT, TradingView
Important levels to keep track of
Based on the liquidation charts, there could still be significant long leveraged positions around $1 (bright oranges).
Moreover, the amount of liquidity from short sellers piled up to $1.2 and above. For context, market makers tend to influence the market based on the liquidity zones.
In short, market makers could show their hand by looking at these liquidity zones and influence the price action.
Read Cardano [ADA] Price forecast 2024-2025
So the price could still drop to $1.0 before rising above $1.2. However, a drop below $1 could indicate a bearish market shift for the altcoin.
Source: Coinglass
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
