After slipping below the $0.5 mark on January 8th, Cardano demonstrated a swift Cardano price recovery. The bullish momentum has the potential to drive further gains. The lower timeframe price charts reveal a promising outlook for Cardano [ADA], particularly following its impressive rebound from the $0.48 area and subsequent retest as a demand zone. This has paved the way for a potential rally towards the range highs.
The Delay of Cardano’s USDM Stablecoin Launch
However, the delay in the launch of the Cardano USDM stablecoin could potentially cast a shadow over the project’s credibility and value in the eyes of investors. Despite this setback, the H4 order block witnessed a robust bullish response.
Cardano’s Market Structure
As illustrated in the 12-hour chart, the market structure for Cardano is predominantly bullish. On January 8th, the bearish structure was shattered when prices rose above $0.5298. Furthermore, ADA has maintained trading within the range (purple) that spans from $0.511 to $0.679.
AMBCrypto’s analysis of the 4-hour chart provides insight into the impulse move from the $0.48-$0.5 zone. The H4 chart reveals a bullish order block in the $0.464-$0.5 zone. Following the break in market structure, ADA retested this block on January 10th. The prices then rallied by 26% after the retest, although there has been a slight decline over the past 20 hours.
Cardano’s Mid-Range Mark
ADA bulls have been grappling with a large supply zone just above the mid-range mark at $0.595 since December 20th. Consequently, bulls anticipating a retest of the range highs should tread carefully. Traders might consider taking partial profits above the mid-range mark and exiting their long positions upon a move into the $0.65 bearish order block.
The trend of daily active addresses picked up again in January after a decline in the latter half of December, indicating a potential increase in ADA demand. Moreover, the development activity has seen a resurgence following the festive season. The high realized market cap suggests significant resistance to downward price pressure, as evidenced by the bounce from the $0.48 area.
For those interested in tracking the Cardano price recovery, the cryptoview.io application provides a comprehensive overview of cryptocurrency trends and movements.
Track your Cardano investments nowThe MVRV ratio, which has fallen to near zero, implies that the selling pressure from profit-taking activity could be minimal in the future. However, investors should always exercise caution and make informed decisions.
Note: The information provided here does not constitute financial, investment, trading, or any other type of advice. It is purely informational and reflects the writer’s personal opinion.
