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.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
