Bitcoin surprised crypto funs the previous week as the bellwether crypto embarked on uptrends, surging 22%. That saw altcoins rising, and Ethereum led the bullish journey. The second-largest crypto revived from month-long lows to $1,630, following a remarkable 55% upswing. Like ETH, Cardano’s ADA rebounded from below its range lows. Nevertheless, ADA could not overcome the mid-range hurdle. Cardano seemed ready to revisit the range lows during this publication.
Cardano 12Hr Timeframe
The 12hr chart displayed Cardano’s range between $0.44 and $0.64. The range’s midpoint stands at $0.54. Meanwhile, ADA dropped beneath the mentioned range low one week ago and seemed to retest the area as resistance.
Nevertheless, that emerged as a near-term bear trap. The prices bounded higher within no time, as market leaders, Bitcoin and Ethereum, exhibited a bullish impetus. Nevertheless, the upside momentum might wane as the assets hit their respective higher chart resistances.
Cardano 2Hr Timeframe
Cardano likely disappointed bulls with their failure to switch mid-ranges to support. Analysts used the upswing between $0.4 and $0.54 to plot FIB retracement zones on the 2hr chart. They placed the 38.2% retracement mark at $0.493. That altcoin already closed a session below this mark (during the publication). Moreover, it seemed to retest the level as resistance. ADA might resume its downsides in the coming few hours.
Meanwhile, a session closing beyond $0.5 would signal some near-term bullishness. Furthermore, the value area at $0.485 – $0.505 represented a bear stronghold. Considering the price actions, ADA seemed primed for a downward move. The bulls were to defend the 38.2% retracement zone but surrendered it to bears.
Also, the Relative Strength Index dropped beneath the 50-neutral on the 2hr chart, confirming bearish ascendancy. The Stochastic RSI’s bullish cross isn’t enough to alter the situation. Meanwhile, the OBV met another rejection around a resistance mark from early July. That shows ADA was yet to launch a breakout despite the uptick to $0.54. Moreover, the Chaikin Money Flow declined beneath the -0.05 area, denoting substantial capital outflows from the marketplace.
Cardano saw an impressive bounce last week as the alt climbed to $0.54 from $0.4. However, OBV’s failure to overcome resistance indicated the absence of massive demand. Also, moving beneath 38.2% again opened the gate to the 61.8% – 78.6% range ($0.43 – $0.45). Aggressive traders/Investors might short ADA, using this range as a profit-taking target, and place a stop-loss beyond $0.5.