- ADA price prediction looks bullish after retracing all the gains it made following the strategic reserve announcement.
- The obstacles overhead were significant, and the sentiment across the market meant buyers were reluctant to enter.
Cardano [ADA] saw a 17.8% price gain in the past 36 hours.
Speculation that Gemini might list Cardano on their exchange, combined with the U.S. crypto strategic reserve news from earlier this month, could have changed investor sentiment in the past two days.
While the co-founder of Gemini didn’t think Cardano was a suitable asset for the strategic reserve, he didn’t downplay the listing possibility either.
Combined with a retest of the 3-month strong support, could ADA be set for a bullish reversal?
Cardano’s quick gains could be halted at…
Source: ADA/USDT on TradingView
Cardano’s bounce in the past 48 hours was likely due to its retest of the 3-month range lows at $0.68. However, the volatility following the strategic reserve announcement meant the buyers were at a disadvantage.
The price was unable to defend the $0.8 level. It had been a bearish order block, but acted as a bullish breaker block for a brief time. The descent below $0.8 has put the bulls on the back foot and fighting uphill.
The Awesome Oscillator showed momentum has shifted bearishly.
The structure on the daily chart was bearish, but the range bound nature in recent months meant it was better to pay attention to the range levels than the structure.
The 75% range level at $0.8 coincided with the bearish order block from February, marking it as the closest and strongest resistance zone.
The CMF was at -0.01, showing no significant capital flows into or out of the market.
Source: Coinglass
ADA price prediction
The 3-month liquidation heatmap showed that the major liquidity cluster to watch out for was at $1.17. The $0.634, $0.8, and $0.83 levels were also lower timeframe liquidity pockets to watch.
Source: Coinglass
The 2-week heatmap showed that this was indeed the case. The way north was filled with liquidation levels, meaning ADA prices will be attracted northward, potentially as high as $1.
However, this upward pull was contrasted by a lack of buying pressure in the spot market and a market-wide bearish bias.
In particular, the $0.9 was a promising bearish reversal zone. It lined up well with the mid-range level at $0.907.
Therefore, traders can wait for Cardano’s reaction from $0.8 to understand if they should try to capture a bounce toward $0.9. Similarly, a move beyond $0.9 could see $1.03 and $1.09 revisited.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
