- ADA is retesting the $0.3300 support and $0.3407 resistance
- Weighted sentiment has improved, but ADA holders still don’t turn a profit
Cardano [ADA] The formation of a price rally on the daily chart shows a bullish market structure on the lower time frame. This is an impressive performance in a bear market in general. ADA was trading at $0.3404 at press time, up about 1% over the past 24 hours.
The reversal of the 0.236 Fibonacci level (resistance) of the support area and the subsequent uptrend could provide additional buying opportunities for day traders. If the bulls fail to build up enough buying pressure, then investors should watch these levels for stop losses.
If I test the 0.236 Fibonacci level, will the bulls continue to dominate?
The recent correction of ADA found support at $0.3300 (white, dotted), which corresponds to a bullish order block on October 20. The support level provided a rebound base for the bulls, and the price rally was still continuing on the daily chart at the time of publication.
At the time of writing, the Relative Strength Index (RSI) has risen from the oversold entry level and moved towards the balance level at 50.
This indicated that the selling pressure was fading as the bulls fought with the bears for control. This could allow the bulls to target and reach new resistance levels in the coming days or weeks.
If the bulls maintain their momentum and turn the resistance at $0.3404 into support, this will provide an entry point for long positions. If the bullish momentum continues, the immediate long trade target will be $0.3957 and the bearish order block will be in the range of $0.3719-$0.3752.
However, a daily close below the $0.3404 support would counter this bullish bias.
The Directional Movement Index (DMI) showed that sellers (red line) are outperforming buyers (green line). So the current market continues to favor sellers.
If the bulls fail to build up enough buying pressure, ADA prices could drop lower. In such a scenario, you should set the stop loss below the zero Fibonacci level (0.3099 USD).
ADA weighted sentiment is improving
Santiment analysis data Cardano (ADA) appears to have noticed a positive sentiment on November 12 and has been rising steadily since then. The improvement was reflected in the ADA price increase that followed on November 14th.
Short-term ADA holders continue to suffer losses
However, short-term ADA holders suffered losses as the 30-day MVRV was still in place. negative area. However, it moved higher, citing diminishing losses due to improving sentiment and recovering prices.
However, the improvement in sentiment and the recovery in prices have not resulted in sufficient trading volume so far. According to Santiment, the price hike was accompanied by a drop in volume. This can affect buying pressure and prevent ADA from reaching long trade targets.
However, traders should monitor the sentiment on the movement of ADA and BTC before trading.