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Identifying Cardano’s Next Short-Term Target as Bulls Seek Reversal
Cardano [ADA] has been trying to establish an uptrend on the price chart, but the market sentiment is not sufficiently bullish yet. Despite this, bears had a strong hand throughout June, resulting in significant losses for the altcoin. However, recent events could be signaling a change in momentum.
Over the past week, ADA has bounced from the $0.51 support level and established a higher low at $0.545. This could mark the beginning of a short-term reversal, potentially paving the way for a test of the $0.594 local high from last Tuesday. A break above this level would shift the market structure in a bullish direction.
Technical indicators are also indicating that the bearish momentum is starting to weaken. The Relative Strength Index (RSI) has made higher lows over the past few days, suggesting the decline may have reached its terminal point. Additionally, the On Balance Volume (OBV) saw a small bounce and if it sustains this upward movement, it would be a positive sign of increased demand.
If successful in breaking above $0.594, ADA could potentially reach $0.62 or $0.65 in the short term. It is crucial to remember that the major structure remains bearish following the significant drop from $0.73 earlier in June. As such, any long trades should be quick to capture profits and cut losses, given they would be trading against the prevailing trend.
To confirm this forecast, traders should keep an eye on key resistances around $0.61 and $0.64 for a clear indication of reversal momentum.
Source: ambcrypto.com
