Cardano: Wait for this to happen before ADA braces for a 20% rally

ambcrypto.com:

Cardano’s price has been showing an affinity to move higher on the charts. However, this bullish outlook is likely to play out after a bounce off its immediate support level. In fact, on-chain metrics also seem to suggest that ADA is likely to see a significant surge in buying pressure.

Cardano’s price has set up equal lows around the $1.01-support level, indicating that sell-stop liquidity is resting below the same. Therefore, investors can expect ADA to undergo a minor retracement to this barrier and sweep below it to collect the sell stops.

Doing so will allow market makers to engineer liquidity for a move higher. Therefore, a bounce off the $1.01-support level will lead to a 20% ascent to the four-hour supply zone, stretching from $1.20 to $1.24.

Market participants can expect ADA to produce a local top at $1.20 since it is a significant hurdle. On the contrary, if bid orders pile up, bulls could push through this blockade and make a run for the $1.32-resistance level. This would tabulate the total gains to 30%.

Source: ADA/USDT 4-hour chart on TradingView

Supporting this bullish outlook for Cardano’s price is the MVRV indicator. This fundamental index is used to measure the average profit and loss of holders that purchased ADA over the last 30 days.

At the time of writing, the MVRV was hovering at around -5.04%, indicating that short-term holders are at a loss. Long-term holders tend to accumulate at these levels. What this means, ergo, is that the altcoin is in an opportunity zone and is likely to see a surge in buying pressure. This will likely trigger its next ascent. 

Source: Santiment

Now, while things are looking up for Cardano’s price on the charts, a breakdown of the $1.01-support level will create a lower low and