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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Cardano recorded bullish sentiment over the past two days.
- Liquidity in the south could be visited before another surge occurs.
Cardano [ADA] showed short-term momentum from $0.355 to $0.398 over the past two days. This recovery amounted to 12%, but the ADA bulls continued to put up an uphill battle in the lower timescales.
In other news, Charles Hoskinson, the founder of Cardano, had an interesting proposal for one of the biggest names in the tech industry today. Could this further the bullish sentiment behind ADA?
The current outlook favors a bearish bias until a key resistance level is broken
Source: ADA/USDT on TradingView
Over the past two weeks, ADA has traded within a range (dashed cyan) stretching from $0.349 to $0.395. Furthermore, a weekly bearish order block (red) was just below the $0.4 mark, hindering the bulls’ progress.
During this time, the token’s market structure has shifted several times on the four-hour chart. This was also encapsulated by the meandering RSI that fluctuated from 60 to 40 and back again.
The volume indicators also did not show a strong trend.
On-Balance Volume (OBV) has been on a downward trend over the past ten days, showing that selling pressure has been slightly greater. The Chaikin Money Flow (CMF) was below -0.05, indicating large capital outflows from the ADA market.
Therefore, a move towards the mid-range support at $0.372 or the lows in the range was likely. An examination of the liquidation data could provide more clues as to where prices could go next.
Hyblock data provided an actionable trading plan for the lower time frames
Source: Hyblok
AMBCrypto’s analysis of Hyblock liquidation levels data showed that bulls could soon make profits. At the time of writing, the Cumulative Liq Levels Delta was very positive and showed that long positions will lose more if prices turn against them.
Therefore, there could soon be a move south in search of liquidity. The $0.383, $0.38 and $0.372 levels each had a liquidation profile of almost $3 million, excluding smaller values in between.
Read Cardanos [ADA] Price prediction 2023-24
This meant that a move to these levels could cause significant long-term liquidations. The $0.372 level was in line with mid-range support.
Therefore, a decline into this area would provide a buying opportunity targeting the range highs and even the next substantial liquidity pool at $0.4.
