- Cardano broke out past its 4-month-old range high
- A move towards $0.422, driven by liquidity, seemed likely to occur soon
Cardano [ADA] was successful in its range breakout over the past week, gaining by a remarkable 43.3% from Monday’s lows to hit $0.4587. In fact, a recent report highlighted that whale transactions increased by 32% too.
Such a hike in whale activity reflected a spike in interest in Cardano and higher demand. Here, it’s also worth pointing out that trading volume has been significantly above average during this rally.
Cardano dips are for buying
Source: ADA/USDT on TradingView
Since August, Cardano has traded within a range, one that extended from $0.313 to $0.394. In late September, it tried to blast beyond the range high and hit $0.418, but faced rejection. At that time, Bitcoin [BTC] also faced rejection from its $66.2k resistance.
ADA’s slump brought it to the range lows in the second half of October. On 4 November, the CMF and the MACD signaled no significant capital inflows and bearish momentum.
The indictors turned on their head following the swift gains the token made over the past week. The CMF was at +0.26, higher than it has been since February. The MACD showed strong bullish momentum. Finally, the OBV was on the verge of climbing past its local highs that remain unbeaten since August too.
Liquidity hunt is likely before the next impulse move
Source: Coinglass
The liquidation map outlined the $0.422 and $0.44 levels as places with a considerable concentration of liquidation levels. The cumulative short liquidations at $0.44 were higher. Additionally, a bounce to $0.44 would entice more traders to go long, building up liquidity to the south.
Is your portfolio green? Check the Cardano Profit Calculator
Thereafter, a retracement to $0.422 or deeper can collect this liquidity before Cardano is ready for its next move. Technical analysis revealed that a surge beyond $0.457 is only a matter of time, and $0.5 and $0.57 would be the next long-term targets.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
