Key Takeaways
- Bullish Technical Indicators: An internal change of character (I-CHoCH) and bullish MACD divergence suggest Cardano (ADA) is primed for a potential upward move.
- Critical Support Zone: ADA’s ability to hold the $0.63–$0.64 support zone is key for sustaining bullish momentum, with upside targets near $0.67–$0.70.
- Cautious Optimism in Derivatives: Positive funding rates and strong long bias on major exchanges indicate market confidence, though a drop in options volume suggests subdued institutional activity.
Cardano (ADA) may be on the verge of a significant price move, according to a new TradingView analysis by MyCryptoParadise. Despite losing nearly 9.6% over the past week—from $0.73 on June 10 to a low near $0.60—technical indicators suggest a bullish reversal could be forming.
As of today, ADA is trading around $0.6230, with analysts closely watching key levels for confirmation of a sustained upward trend.
Internal shift and technical signals point to reversal
On the ADA/USDT 4-hour chart, an internal change of character (I-CHoCH) has been identified. This structural signal often marks the end of bearish trends and the beginning of bullish momentum. The I-CHoCH followed a sell-side liquidity sweep near $0.6200—a classic setup for market reversals.
Additionally, the MACD indicator is showing bullish divergence: while ADA’s price printed lower lows, the MACD histogram and signal lines formed higher lows, suggesting weakening bearish pressure.
A critical support zone between $0.63 and $0.64 has also developed, turning previous resistance near $0.6421 into potential support after ADA’s rebound from $0.61 on June 14.
Entry strategy and potential upside targets
The TradingView analyst recommends a cautious approach. Aggressive traders may consider entries near current prices, while conservative traders might wait for a confirmed bounce from the $0.63–$0.64 support zone.
On the upside, ADA faces resistance just below $0.67. Breaking this level could trigger a move toward $0.70, offering a potential gain of over 10%. However, a close below $0.6200 would invalidate the bullish setup, signaling traders to wait for a new structure.
Derivatives data reflects cautious optimism
Cardano’s derivatives market adds weight to the bullish case. Trading volume jumped 45.36% to $1.26 billion, with a positive funding rate and long/short ratios indicating strong bullish positioning on platforms like Binance and OKX.
Also Read: Cardano (ADA) Battles DeFi Setback as Stablecoin Liquidity Crisis Sparks Community Debate
While open interest dropped 4.07% to $747.58 million, and options volume fell sharply, no significant bearish reversal signals have emerged. Overall, the outlook suggests ADA could be preparing for a recovery—provided key support levels hold.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
