Recent technical developments suggest that Cardano (ADA) could be positioning itself for a potential upward move. After a nearly 10% decline over the week, ADA appears to be establishing a foundation for a reversal.
Technical Structure Indicates Bullish Shift
An analysis by MyCryptoParadise on TradingView highlights several early signs of a trend reversal on the 4-hour chart. At the time of his analysis, ADA traded close to $0.6245, attempting to hold support in a key region.
The analyst highlighted an internal change of character (I-CHoCH) after a liquidity sweep below $0.62, suggesting bearish momentum is waning, and indicating a potential shift toward a more constructive market setup.
Price Action and Risk Zones
While the current trading level shows signs of stability, the next steps remain critical. Recent predictions suggest a bullish turn before June 30, and a sustained hold above $0.63 would reinforce the short-term bullish setup. A break above minor resistance near $0.67 would open the door for further gains, potentially targeting the $0.70 region.
This move would represent over a 10% increase from current levels, assuming the upward momentum is maintained.
Derivatives Trends Suggest Bullish Leaning
ADA’s derivatives data signals cautious optimism. Trading volume surged 45% to $1.26 billion, while open interest declined 4.07% to $747.58 million. Long liquidations totaled $1.6 million versus $236,000 for shorts, and funding rates remained positive.
The overall long/short ratio was 0.9391, but Binance and OKX showed a stronger long bias, both above 2.4.
Market signals and new analytical data suggest that Cardano (ADA) may be on the verge of significant growth. However, investors should consider potential risks and remain vigilant in market conditions.
