Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Cardano [ADA] is still stuck in a range after failing to flip $0.3800 into support. The failure to clear the roadblock has prevented the 12-hour market structure from flipping to bullish.
So, sellers could exert more control for the next few hours/days unless Bitcoin [BTC] reverses recent losses.
The recent recovery, from $0.35 – $0.38, seen between 26 May- 29 May, corresponded with improved development activity and a DeFi transactions surge within the Cardano ecosystem.
However, the high developer count couldn’t push ADA bulls to close above this hurdle.
ADA rejected at April’s former support zone
Source: ADA/USDT on TradingView
The support zone (cyan) of $0.383 – $0.370 has been a key demand zone throughout April and early May. The level is also a bullish order block (OB) formed on 30 March on the 12-hour chart.
Sellers cracked the support in early May, following increased bearish pressure, but the drop eased near $0.3500. After that, price action formed a range between the former support zone and $0.354.
At press time, ADA faced rejection at $0.383, and the RSI was headed to the neutral position of the 50-mark. The OBV has declined since mid-April.
As such, a rebound could be likely from the mid-range level of $0.368 and sellers should watch out for it. But sellers could extend gains to the range low at $0.370 if the mid-range level cracks.
Conversely, a move above $0.383 will invalidate the above bearish thesis. Such an upswing will flip the market structure bullish, and ADA could rally to $0.397.
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Sellers gained more market control
Source: Coinalyze
The CVD (Cumulative Volume Delta) spot, which tracks cumulative volume change within buy and sell orders, increased rapidly from May 27. This underscores buyers’ control.
But the metric faltered on 29 May and has nosedived since then, denoting increasing market control by sellers. As such, sellers could breach the mid-range of $0.368, especially if BTC drops below $27k.
