• Cardano (ADA) was trading at $0.411 last Sunday and fell by 12.2% to trade at $0.361 the time of writing
• The market structure was bearish on the lower timeframes but there was a 4-hour bullish order block that could spark a rally in Cardano’s price
• Open Interest has fallen alongside the price over the past few days and there has been some liquidation of long positions when Cardano dropped from $0.38 to $0.365
Overview of Cardano (ADA)
This article looks at how recent market movements have affected Cardano (ADA) and whether it is a good buying opportunity for investors. Last Sunday, ADA was trading at $0.411 and in the past week, the price has fallen by 12.2% to trade at $0.361 at the time of writing. The market structure was bearish on lower timescales but a 4-hour bullish order block laid an invalidation level for buyers which could spark a rally in Cardano’s price if they take advantage of it.
The 4-hour and 1-hour chart show that there are lower highs and lower lows over the past week as well as strong bearish momentum with RSI being 32.9 and OBV being in a downtrend for three days now; however, this is also a retest of the H4 bullish order block which ADA made earlier this month, providing buyers with an opportunity to reverse prices back up near its peak around $0.41 from earlier this month if they take advantage of it before prices drop below $0.345 which would invalidate such an idea according to this analysis .
Open Interest & Liquidations
Open Interest has decreased along with prices over the past three days indicating reduced long positions taken in ADA due to bearish sentiment; however spot CVD made higher lows while climbing signifying demand within markets while liquidation charts showed some long positions were liquidated on 24 February worth around one million dollars when ADA dropped from 0$.38 to 0$.365 in two hours .
Overall although current indicators point towards continued bearishness, those willing to risk potential losses can indeed use this opportunity presented by bullish order blocks to purchase ADA near its support level with potential upside should bulls manage push prices beyond their previous peak near 0$.41 before any further drops below 0$.345 invalidate such an idea .
The information presented does not constitute financial, investment, trading or other types advice and is solely writer’s opinion