Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- Price action faced an obstacle at $0.3876.
- Aggregated CVD (cumulative volume delta) showed sellers had leverage.
Cardano’s [ADA] recovery continues to face challenges but has clawed back some of the gains lost after retracement from mid-February. At press time, ADA hit a price ceiling of $0.3876, and bears seemed determined to sink to key support at $0.3578.
Read Cardano [ADA] Price Prediction 2023-24
So far, the $0.3578 has prevented a dip plunge twice, giving a reprieve to bulls. The support could be steady if BTC maintains a hold on $28K. However, bulls’ efforts could be complicated if BTC drops below $28K.
Will the $0.3578 support hold?
Source: ADA/USDT on TradingView
The retracement from mid-February saw ADA depreciate by 28%, dropping to $0.30. But the low price saw increased demand, tipping bulls for a recovery. Price action oscillated between $0.3236 – $0.3578 before breaking above the range after BTC zoomed to the $28K area.
Bears could sink ADA to retest the $0.3578 support. But a close below the support could attract a more aggressive price dump that could push ADA towards the lower support at $0.3236, especially if BTC drops below $28K.
But bulls could gain leverage if ADA closes above the price range upper level of $0.3876. Such an upswing could push the price toward $0.4056 or the overhead resistance level of $0.4201.
The Relative Strength Index (RSI) faced rejection below the 60-mark and moved sideways after retreating from the oversold zone. It shows buying pressure eased. The Chaikin Money Flow (CMF) moved south, showing bears had more influence in the market.
CVD slope turned negative
Source: Coinalyze
According to Coinalyze, the aggregated CVD (Cumulative Volume Delta) slope turned negative and moved downwards, indicating that sellers were more dominant in the market at press time. Therefore a retest of the $0.3578 was highly likely, and a breach below could occur if BTC falls below $28K.
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However, more short positions ($445K) have been liquidated in the past 24 hours compared to long positions ($345K). It shows an underlying bullish sentiment which could offer bulls hopes of a possible rebound at $0.3578. But investors should track BTC’s price movements for more profitable moves.
