The how and when of Cardano’s efforts to reverse market trend
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
Cardano, as a blockchain, has seen some quick developments over the past few months. With respect to security, for instance, Cardano announced doubling its bug bounty program on Hackerone in an effort to tighten security in the era of hacks and exploits.
In fact, Messari.io also noted that the Cardano network had more transaction activity (24 hours, adjusted volume) than Bitcoin or Ethereum. Such doses of positive news, while pleasant to read, have not made themselves felt on the charts yet.
Source: ADA/USDT on TradingView
Since November, when the $1.91-level was flipped from support to resistance, the market structure has been bearish. In mid-January, there was a strong pump in the price of ADA from $1.1 to $1.6 in a matter of days. Alas, selling pressure reversed all these gains and then some to make ADA retest $1 as support.
Over the last 30 days, the price appeared to form an ascending channel pattern (white). And, $1 has held in the face of the bears thus far.
The Volume Profile Visible Range tool showed that the Point of Control lay at $1.1, and the price was above this level. According to the VPVR, the next pocket of significant liquidity lay at $1.24 – in between the $1.2 and $1.26 levels of resistance.
ADA would need to move above $1.26 to show signs of bullishness over the longer timeframes.
Source: ADA/USDT on TradingView
The RSI has been oscillating rather wildly over the past month while the two months before January saw a bearish trend for the most part for Cardano. At the time of writing, the RSI was at neutral 50 once again. However, it might get rejected since the channel’s
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