What’s hindering Cardano’s rise to $0.4?
ADA cools off from the massive price pump on 12 July after hitting this bearish order block. What’s next for bulls?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
ADA’s sharp rally faced rejection June high of $0.382.
Funding rates were positive even as short-term sell pressure increased.
Cardano [ADA] cleared the sticky $0.3 hurdle, but it isn’t out of the woods yet. Bitcoin [BTC] hit a new high of $31.8k on 13 July, tipping ADA to clear the $0.3 hurdle. However, BTC retreated at the time of writing, threatening ADA to clear some of its recent gains.
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ADA struggled to bypass the $0.3 hurdle in the second half of June and early July. Although BTC’s upswing on 13 July boosted Cardano bulls to clear the hurdle, the rally was rejected at a bearish order block, which aligned with the June high.
Cardano: Where will the pullback ease?
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The recent massive pump was rejected at the bearish order block of $0.375 – $0.382 (red), aligned with the June high. The pullback cleared the May support of $0.356 at the time of writing.
Although bulls are expected to mount resistance at $0.337 to prevent further drop, an ideal buying level would be a pullback retest of the breakout level of $0.3 (March low) or close above the bearish OB of $0.375 – $0.382. The likely target would be bearish OB for the former, while the latter would re-target $0.42.
However, a breach below $0.3 will tip the scale in favor of the bears, with $0.26 a likely stop in such a bearish scenario.
Meanwhile, the RSI entered the overbought zone, reinforcing the massive buying pressure witnessed in the past few hours. Similarly, the OBV (On Balance Volume) edged slightly, underscoring the surge in demand in the same period.
CVD spot moved southwards
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Based on the 1-hour Coinalyze chart, the aggregated funding rate remained positive, as shown by the green bars, underscoring the overall bullish sentiment in the market.
However, the CVD (Cumulative Volume Delta) retreated, denoting little short-term pressure after ADA hit the bearish OB. A further CVD drop will signal an extended pullback with $0.337 and $0.3 likely buying potential if BTC eases further towards $30k.
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