Silent Cardano Surge: Could a Major Breakout Be Imminent?

Silent Cardano Surge: Why ADA Could Be Poised to Explode?

Since December, Cardano has been trading in a range. However, a small range has developed during the last three weeks close to its long-term range lows. Although there was buying pressure, there was little momentum.

The Bollinger Bands were comparatively broad on the 1-day chart, indicating some volatility. At the time of writing, the token’s market structure was bullish despite the fact that it was trading within a three-week range. After it bounced back and reclaimed the range bottom at $0.68 as support, this flip took place.

Cardano Price Slips Below Key Support: Is a Bearish Reversal Imminent?

A bullish trend was formed by the succeeding rise in early May, which saw a higher low hit at $0.74. A bearish structural change was threatened by ADA‘s trading below this level at the time of publication. Bearish short-term momentum was implied by the price actually being below the 20-period moving average.

From $0.73 to $0.84, the short-term range (white) increased, with the mid-range level reaching $0.78. As the altcoin’s price steadily declined over the previous five days to $0.73, the Bollinger Bands were comparatively tight around the price movement on the 4-hour chart.

MVRV Signals Mixed Sentiment: Short-Term Gains, Long-Term Caution

On the H4 chart, the moving averages indicated that momentum was negative. Although the trade volume has decreased since May 24th, the OBV’s gradual slide over the last three days indicates that sellers have been in control. Lastly, Santiment data showed that holders with short- to medium-time horizons were making a healthy profit. The MVRV for 90 days was 26.5%. However, with the 365-day MVRV at only 8%, long-term investors were not making large profits.

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