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Should you look to buy now that Cardano bulls are defending the $03 support?


Cardano bulls defend the $0.3 support- should you look to buy now?

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • Cardano has strong bullish sentiment in the lower timeframes.
  • The daily chart was also bullish but it remains to be seen if the buyers can maintain their momentum.

Cardano [ADA] has clung to the $0.3 support over the past ten days, but was beginning to climb higher. The network also witnessed a surge in development activity. Moreover, the on-chain metrics were positive too.


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Since late May, ADA has oscillated between two higher timeframe resistance and support regions. At the time of writing, the buyers have managed to defend the $0.3 support and have forced a minor move higher. It appeared likely that further gains could follow.

The daily timeframe shows a move higher was brewing for ADA

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Cardano [ADA] stays above the $0.3 support, can the bulls drive a rally this time?

Source: ADA/USDT on TradingView

The price action of Cardano remained bullish on the 1-day price chart despite the swift rejection the bulls faced in the $0.365 region. This resistance, highlighted by the red box, was a bearish order block on the 1-week chart. Similarly, the $0.24 region highlighted in cyan was a bullish order block on the weekly chart.

ADA has a bullish market structure after setting a higher high at $0.379 and a higher low at $0.3 on 18 July. Since then, the bulls have not been overpoweringly strong but managed to hold on to the support zone.

The RSI also retested neutral 50 as support before moving higher. It showed bullish momentum rising but the OBV was trending lower over the past two weeks. The OBV highlighted a lack of buyers. Meanwhile, the DMI showed a strong uptrend in progress, which was consistent with the price action.

Therefore, an ADA move back to the $0.36 mark could occur in August. A drop below the $0.3 support zone (green) would invalidate the bullish idea presented.


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Coinalyze data indicated firm bullish conviction in the lower timeframes

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After 27 July, the Open Interest climbed higher from $115 million to $125 million as the price rose from the $0.3 mark. But the spot CVD had been in a slump till 29 July. The 24 hours before press time saw the CVD climb higher.

Hence, both the OI and CVD show buying pressure and bullish sentiment behind Cardano. Combined with the price action on the higher timeframe chart, Cardano buyers can expect further gains.

Sources


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