ADA: Bullish Reversal Structure Points to Potential Upside

9 thg 3, 2024

Cardano (ADA) is demonstrating a compelling reversal structure, exhibiting a tendency to respect bullish elements while disregarding bearish signals after initial reactions.

Following its ascent to the 60-69 cent range, previously marked by a monthly bearish FVG , ADA found support around the weekly FVG level, leading to further expansion. This shift suggests a transition in order flow dynamics from bearish to bullish. Given that FVGs represent internal liquidity draws, there's an anticipation of an upward expansion towards the 90 cent mark, aiming to surpass previous highs and ultimately targeting the 1.2 level. However, it's prudent to anticipate a sell-off during the summer months, potentially bringing ADA down to the $1 region. This move would serve to reverse the bearish FVG and provide an opportunity for re-accumulation before attempting to breach the all-time highs.

In summary, ADA's current price action indicates a favourable outlook for further upside potential, with resistance levels likely to be challenged and overcome. However, investors should remain vigilant of potential short-term corrections and utilize strategic entry and exit points to capitalize on the anticipated bullish momentum