Cardano rebounds to $0.6784, breaking key Fibonacci levels. Could ADA hit $0.73 amid improved market sentiment?
As Bitcoin momentarily gains the $97,000 mark, altcoins like Cardano have surged by nearly 4%. Currently, the ADA price stands at $0.6784, witnessing a massive overnight comeback.
As the uptrend in Cardano gains momentum, the bulls have reclaimed the recently lost $0.67 high-volume zone. Will this reversal in Cardano’s price help it surpass the $0.72 decline?
Cardano Price Analysis Signals Potential Breakout Rally
Cardano’s price has made a bullish comeback from a strong support trendline on the 4-hour price chart. Coinciding with the support trendline, the 50% Fibonacci level has helped Cardano regain bullish strength.
With three consecutive bullish candles, the recovery in ADA’s price has surpassed the 61.80% Fibonacci level at $0.6732. The key Fibonacci resistance breakout also marks the breakout of a high-volume zone.
This high-volume zone had provided strong support for Cardano in late April. However, the recent breakout signals a V-shaped reversal in the ADA price trend, as well as a falling wedge breakout.
As Cardano sustains above the 61.80% Fibonacci level, buyers anticipate an upside move towards the $0.7292 resistance. This critical resistance has kept the Cardano price under check since late April.
The positive crossover in the MACD and signal lines supports the bullish outlook. According to Fibonacci levels, a potential breakout could reach the 1.272 level at $0.8372.
On the flip side, the crucial support remains the ascending trendline and the 50% Fibonacci level at $0.6437.
Derivatives Market Warns of Sharp Moves Ahead for Cardano
With the bullish recovery in Cardano, the derivatives market has witnessed stability in Cardano’s Open Interest. Since late April, according to Coinglass, Cardano’s Open Interest has sustained around the 700 million mark, currently at $735 million.
The funding rate also remains positive at 0.0065%. The derivatives market shows underlying bullish confidence with a positive funding rate and stable Open Interest.
Notably, with growing optimism, a potential surge in ADA’s price to $0.692 could result in massive short liquidations amounting to $4.46 million. This includes $427K from Binance, $232K from OKX, and $514K from Bybit.
On the flip side, a potential correction to $0.664 would result in intense long liquidations of $5.75 million. Therefore, the liquidation map reflects a double-edged position for Cardano, while the open interest and funding rate indicate a marginally bullish condition.
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.
