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Is Cardano set to soar? Mapping key levels to watch
Cardano’s (ADA) price has been stagnant for a while now, but according to recent data and market analysis, it seems like the asset is on the verge of a massive upswing. In this article, we will be exploring the key levels that traders should be keeping an eye on.
Consolidation period comes to an end
Cardano’s price has been stuck in a consolidation phase for some time now, with the cryptocurrency oscillating between $0.699 and $0.75. However, recent market sentiment shifts have led to a sudden surge, pushing the asset up to the upper boundary of this range.
If Cardano manages to break above this level and close a daily or four-hour candle above $0.76, there is a strong possibility that it could soar by 13% to reach $0.85 in the coming days.
Resistance at 200 EMA
On the four-hour chart, it appears that the 200 Exponential Moving Average (EMA) has reached the $0.75 mark, which serves as additional resistance for ADA’s upward momentum.
Bullish on-chain metrics
However, there is more to Cardano’s potential upswing than just technical analysis. According to Coinglass, traders are overwhelmingly bullish on the asset, with a significant amount of long positions built around the $0.712 and $0.76 levels. This is particularly noteworthy as it highlights that even the most seasoned traders have faith in ADA’s upward trajectory.
Short-squeeze on the horizon?
A short squeeze appears to be imminent, as a massive $8.50 million worth of short positions are at risk of liquidation should Cardano break above this crucial level. This could lead to a sharp increase in buying pressure and an equally dramatic rise in price.
Whales and long-term holders accumulate
Data from Coinglass also reveals that whales and long-term holders have been accumulating ADA during the ongoing consolidation period, further bolstering our argument for a potential upswing.
ADA’s continuous outflow
Intriguingly, spot inflow/outflow data suggests that exchanges have witnessed an uninterrupted outflow of ADA tokens since March 13th. This phenomenon can be viewed as a sign of accumulation by these whales and long-term holders, creating an attractive buying opportunity for traders and investors alike.
What’s next?
For Cardano to actually break above this ceiling and begin its ascent to $0.85 and beyond, it is essential that the asset can overcome the 200 EMA hurdle. If successful, we could be on the cusp of a monumental upswing, as ADA has historically been known for its explosive price movements.
In conclusion, Cardano’s recent surge, coupled with bullish on-chain metrics and accumulation by whales and long-term holders, suggests that this cryptocurrency is poised to take off in the near future. We recommend keeping a close eye on these key levels, as they will be critical in determining ADA’s short-term trajectory.
Source: https://ambcrypto.com/is-cardano-set-to-soar-mapping-key-levels-to-watch/
