Cardano (ADA) recently dipped below its six-week trading range, touching a support level at $0.453 before making a strong recovery. The currency has since transformed the $0.51 level from resistance to support, with the potential for significant liquidity near the $0.6 price point.
Indicators of an Uptrend
ADA’s rise above $0.52 has shifted the market structure on the 12-hour chart to a bullish stance, with the currency’s move past $0.524 resistance solidifying it as support. The Relative Strength Index (RSI) has crossed the neutral 50 mark, suggesting a shift in momentum, while the On-Balance Volume (OBV) shows a modest uptick, despite a previous downtrend.
Despite ADA’s recent gains, the increase in buying volume has been marginal. With $0.524 now acting as support, a rise in OBV is anticipated. The price chart indicates a possible resistance zone between $0.56 and $0.57, which could prove challenging for bulls to breach.
ADA’s Bullish Prospects
Analysis of Hyblock’s liquidation levels heat map data aligns with ADA’s price action, suggesting a consolidation of liquidity within the $0.524-$0.536 range. A minor pullback to $0.51 could occur as bulls fortify their positions. The heat map highlights significant liquidity levels between $0.554 and $0.564, with the $0.6 and $0.62 regions potentially drawing prices upwards.
The data indicates that upward liquidation levels may be modest, implying that a price increase is more probable than a decline to the $0.46-$0.47 range. If bulls can overcome the $0.57 resistance, ADA could aim for the $0.62 level, where considerable liquidity is expected.