2023-4-26 00:00 |
Cardano (ADA) is a blockchain-based platform that allows developers to build decentralized applications (dApps) and smart contracts. Created by Charles Hoskinson, one of the co-founders of Ethereum to address some of the scalability and interoperability issues faced by existing blockchain networks.
Given the asset’s potential, ADA has gained a lot of attention in the crypto community over the years. However, lately, many investors and traders have wondered about the crypto’s next move amid the uncertainty in the crypto market.
Cardano (ADA) Possible Bullish BreakoutIn the past week, Cardano (ADA) has seen some significant bearish price action. The asset crashed in the past 7 days with the price down by nearly 20%. This bearish trend can be attributed to several factors, including the ongoing downtrend in the market.
However, despite the bearish trend, ADA may be poised for a bullish breakout, according to the asset’s price chart. On the 1-day time frame, Cardano has just tapped into an order block indicating a likely reversal (upward movement).
An order block is basically the last bullish or bearish candle before the formation of a significant move in the market. It refers to a price level where a large number of buy or sell orders are clustered, creating a significant level of support or resistance.
Large institutional traders, hedge funds, or other market participants who place big buy or sell orders at a specific price level create order blocks. An identified order block at a certain price level may be that price will bounce off that level and move in the opposite direction.
In this case, ADA could form a reversal to the upside given the asset tapping into the order block at the $0.37 region. Though it is uncertain when ADA will execute the reversal, it could happen soon given the precision in the chart.
Meanwhile, at the time of writing, ADA bears seem exhausted as the asset has only been down only 0.2% in the last 24 hours. ADA currently trades at $0.38, slightly above the above-identified order block price level.
Should ADA continue an opposite direction to the upside and not invalidate the marked out order block. ADA’s price could tap into major highs such as the one at the $0.46 zone.
Fundamentals That Could Contribute To ADA’s BreakoutTechnicalities aside, Cardano also has some fundamentals that could be a part of its possible bullish breakout. An instance is the Snowmantastic NFT project transition from the Ethereum network to the Cardano network.
Snowmantastic has collaborated with over 200 projects in the industry. Its transition to Cardano could drive a huge amount of investors into this ecosystem, therefore, increasing the native’s token price in the long run.
On the Cardano network, we can already see a similar scenario where the accumulation of ADA is on the rise. According to a chart shown by the popular crypto analyst, Ali Chart, on April 1, the number of large transactions on Cardano reached 4,000.
By April 13, the transactions climbed up nearing 5,000. The analyst noted,
Large ADA transactions are on the rise, suggesting that Cardano network activity is heating up as institutional players and whales make their moves. This is a bullish sign supporting the ADA uptrend!
Featured image from iStock.com, Chart from TradingView
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