Will Cardano (ADA) manage to bounce back to the $0.28 value? The recent performance of this cryptocurrency suggests it might be a feasible goal. Cardano aims to reclaim $0.28, but the path is fraught with challenges.
Cardano’s Recent Setbacks
In the third week of August, Cardano experienced a significant drop of over 10%. On August 17, it fell by 7%, reaching a low of $0.24, as per the data on TradingView. This downturn was a reversal of the gains made in June and July.
However, from August 18, a recovery was noted, albeit with some overhead obstacles. Concurrently, Bitcoin (BTC) was stabilizing around $25k, with two daily sessions closing above $26k. A weekly closure above this value could indicate a bullish trend from August 21.
The Hurdles Ahead
On August 18, Cardano’s decline slowed down at $0.24, coinciding with Bitcoin’s steady performance near $26k. The fall below $0.2756, a resistance level from June’s latter half, signified a reversal of Cardano’s gains from the previous two months.
An H4 bearish order block between $0.267 and $0.274 exists beneath the previous resistance of $0.2756. The price action hit this bearish order block again, settling at a price imbalance and FVG (fair value gap) between $0.265 and $0.267.
This FVG might become a bullish and buying zone. However, for the bulls to gain an edge, they need to push beyond the double obstacle of the H4 bearish order block and the $0.2756 resistance. If successful, the next targets would be $0.290 and $0.300.
The Road to Recovery
Despite the slight uptick in On Balance Volume (OBV), the RSI didn’t cross the neutral 50 mark. This indicates that the minimal demand wasn’t strong enough to establish a buyers’ edge at the time of writing. Therefore, a reversal at the double obstacle could set Cardano’s immediate support at $0.26.
The Cumulative Volume Delta (CVD) rose steadily on August 18, indicating a small increase in buyer control. However, Open Interest (OI) rates didn’t show the same enthusiasm. After falling from $120 million in mid-August, OI dropped below $100 million on August 17. It oscillated between $89 million and $95 million, illustrating stagnant demand for Cardano in the derivatives market, which could make it challenging for the bulls to overcome the double hurdle.
As Cardano aims to reclaim $0.28, the journey is set to be an uphill battle. However, with the right strategies and market conditions, it’s not impossible. For those interested in tracking Cardano’s progress, the cryptoview.io application provides comprehensive insights and updates.
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