- Cardano indicated that a bullish structure was starting to emerge, but the downtrend had not yet reversed.
- Buyers don’t need to worry about FOMO yet, but can wait for a pivot level to turn into support.
Cardano [ADA] prices jumped 35% from Monday, July 8 to Saturday, July 13. This rapid price increase can be attributed to an increase in purchasing by large holders.
The token’s long-term trend was still bearish, but it was likely that the nearby psychological resistance level of $0.5 would prove decisive in the coming days.
This would be the signal that the bearish trend has reversed
Source: ADA/USDT on TradingView
The 1-day price chart has risen above a recent lower peak of $0.4235, which is encouraging in the short term. It is a signal of a shift in market structure, but it does not guarantee that an uptrend will follow.
The previous range low and the support zone at $0.44-$0.475 were a solid resistance zone. In addition, there was a bearish order block (red) at the $0.46-$0.5 region. A daily session close above $0.5 would signal that an uptrend could follow. Until then, buyers should remain cautious.
The daily RSI surged past the neutral 50 mark, another signal that momentum is shifting bullish. The OBV climbed past the lows of two weeks ago, an indication that buying pressure has supported recent gains.
In the near term, a retest of the $0.42-$0.43 area could offer a buying opportunity with a price target of $0.46-$0.5.
The whale population has increased in the past month
Source: IntoTheBlock
The ADA holdings distribution over a 30-day period showed that addresses holding tokens worth more than $10 million saw a 6.93% increase over the past month.
This reinforced the idea that whales were gathering during the steady price decline the token has been experiencing in recent weeks.
Read Cardano’s [ADA] Price Prediction 2024-25
All in all, it seemed likely that Cardano would start a rise to $0.5.
A breakout past that level would signal a long-term uptrend that could extend to the $0.57 and $0.68 levels that were important earlier this year.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.