Cardano [ADA] inflicted a bullish breakout- Are short-sellers subdued?

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

Cardano [ADA] has depreciated since mid-February and formed a descending channel. But it rallied despite an overwhelming bearish sentiment as the market headed for the U.S. Jobs Report on Friday (March 10).

Read Cardano [ADA] Price Prediction 2023-24

The price action dropped below $0.3000 before a strong recovery on Friday that breached the descending channel. A pullback retest on the breached level could offer new buying opportunities if Bitcoin [BTC] defends the $20K support level. 

Source: ADA/USDT

ADA retested the channel’s upper boundary twice before inflicting a bullish breakout and clearing the 26-period EMA (exponential moving average) of $0.3165. But bulls’ efforts were stopped by the 50-period EMA of $0.3235. 

A retest of the pullback and subsequent bounce from the channel’s upper boundary could confirm the continued recovery. As such, near-term bulls could make moves and target the 50-period EMA or $0.3300 if BTC doesn’t drop below $20K. 

A drop back into the descending channel will invalidate the above move. Confirmation of further drop could offer shorting opportunities at the $0.3101 channel’s mid-level ($0.3030) or $0.2893 in an extreme scenario if BTC breaks below $20K. 

The RSI retreated from oversold territory and reached equilibrium, showing strong buying pressure on March 10. However, it faced a few rejections at the mid-level in the past and could face another if the trend repeats. 

On the other hand, the OBV also exhibited an uptick and could offer bulls leverage if it goes beyond the 15B level. 

Source: Santiment

ADA’s sentiment remained positive