Cardano pulls back to $0.67 after a breakout, but a long-dominated derivatives market hints at a potential move toward $0.76.
With a short-term pullback in the crypto market after an intense bull run, altcoins are slowing down. Cardano, one of the top-performing altcoins in the recent market rally, records an intraday pullback of more than 2%.
However, ADA’s price analysis hints at a potential post-retest bounce-back from the $0.67 mark. Will this propel Cardano to the $1 mark?
Cardano Price Analysis
In the recent market turnaround, Cardano surged from $0.62 to $0.69 in three days. This accounts for a price rally of 13.5%. With this massive surge, Cardano marks a bullish breakout of an Adam and Eve pattern in the 4-hour price chart.
According to Fibonacci retracement levels on the 4-hour chart, the pattern’s neckline aligned with the 61.80% retracement level near $0.67.
The breakout rally faced resistance near the 78.60% Fibonacci level at $0.7156, leading to an intraday pullback to retest the 61.80% level.
However, the recent surge in bullish sentiments has led to a positive crossover in the 50 and 100 EMA lines.
Meanwhile, the MACD and signal lines warn of a negative crossover due to a sudden pause in bullish momentum.
If a post-retest recovery occurs, the price will likely target the $0.76 resistance, followed by the 1.27 Fibonacci extension level at $0.83. On the downside, key support lies at the 200 EMA line at $0.65, followed by the $0.61 support zone.
Derivatives Market Signals Strong Upside for ADA
Despite this short-term pullback, Cardano’s broader market anticipation remains highly bullish. In the derivatives market, the long positions account for nearly 84.42% over the past four hours.
This records an impressive long-to-short ratio of 5.41, signaling strong bullish sentiments for Cardano.
Furthermore, Cardano’s open interest has surged by nearly 4%, along with the increased long positions, reaching $774 million.
Moreover, the funding rate remains highly positive at 0.01404%. Overall, the derivatives data highlights crypto traders’ strong bullish outlook for Cardano.
Amid growing optimism, Binance’s ADA-USDT liquidation map shows the potential for significant short liquidations if the uptrend continues. According to the data, a price rise to $0.721 could trigger $7.77 million in short liquidations, including 50x leveraged positions worth $812,800.
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