-
Cardano price ended its two-week downtrend on November 25.
-
A flip of the $0.321 hurdle will confirm a bullish resurgence and potentially catalyze an 18% upswing.
-
Invalidation of this optimistic outlook will occur if ADA produces a lower low below the $0.300 support level.
Cardano price reveals the start of a bullish move that could extend into a nice, explosive rally in the coming days. ADA investors, however, need to exercise caution due to month-end volatility.
Cardano price does not slow down
Cardano price action between November 11 and 25 shows that a trend line can be drawn connecting the four lower highs formed in the same period. On November 26, however, ADA saw a sudden spike in selling pressure, which pushed it above the aforementioned trend line.
After overtaking this blockade, Cardano price is currently grappling with an overhead hurdle at $0.321. Traders need to exercise caution and enter long positions after ADA flips the $0.321 resistance level into a support floor.
In such a case, Cardano price could trigger an 18% upswing to $0.382.
ADA/USDT 4-hour chart
Supporting this bullish move for Cardano price is the 30-day Market Value to Realized Value (MVRV) model hovering around 8% after bouncing from a low of -14%.
This index determines the average profit/loss of investors that purchased ADA over the past month. Based on Santiment’s research, a value between -10% to 25% is ideal for recovery rallies to kickstart.
For the last four months, any declines in this on-chain metric from 11.3% to 28.3% have resulted in a bottom formation. Although past results do not indicate future outcomes, investors need to pay attention to this strategy as it could trigger a run-up.
%20[14.57.49,%2026%20Nov,%202022]-638050543204140661.png)
ADA 30-day MVRV indicator
While things are looking up for Cardano price, a breakdown of the $0.300 support level will invalidate the bullish thesis. This development will allow ADA to revisit the $0.310 support level.
Here's how Bitcoin's moves could affect Cardano price
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin crumbles under German government transfers, Ethereum and Ripple erase gains
Bitcoin trades below $57,100 on Thursday as German government transfers continue, $76 million BTC moved to exchanges. Ethereum trades near $3,100 ahead of the upcoming SEC decision on the Spot Ethereum ETF.
Ripple traders take over $75 million in losses in July, XRP drops below key support
Ripple (XRP) price is under fresh selling pressure and tests key support at the June 7 low of $0.4508 on Thursday as whales are likely capitulating, according to on-chain data.
Bitcoin price declines as supply on exchanges rises
Bitcoin faced rejection at the daily resistance level of $63,956 on Monday, resulting in a 4.2% decline over the next two days. BTC’s price extends its downward move and falls below $58,000 on Thursday, adding more than 4% losses in the day.
Worldcoin is poised for 17% rally as as technical indicators signal bullish momentum
Worldcoin price finds support and bounces 9% from the weekly support level around $2.183. Technical analysis shows that WLD has formed a bullish divergence on a momentum indicator.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.