Coin World reports:
TradingView analysts say Cardano (ADA) is poised for a big price move on the back of bullish technical indicators.
Cardano has experienced a significant pullback over the past week, falling by about 9.6%. Between June 10 and June 17, ADA fell from $0.73 to a weekly low near $0.60. As of the latest trading data, ADA is hovering around $0.6328.
Despite the broader market pullback, analyst MyCryptoParadise’s latest update on TradingView suggests that ADA may be forming a short-term bullish reversal.
Internal shifts and key technical signals
A key technical development is the observation of an internal characteristic change (I-CHoCH) on the ADA/USDT 4-hour chart. This structural shift signals that the market may shift from bearish to bullish. Previously, a sell-side liquidity sweep (SSS) occurred around $0.6200, which is often a precursor to a market reversal as weaker positions are liquidated.
The MACD indicator showed a bullish divergence, further reinforcing the bullish call. Although ADA’s price has formed lower lows, the MACD histogram and signal line have shown higher lows. This is a classic sign of weakening bearish pressure and a possible uptrend.
Moreover, support has been formed between $0.63 and $0.64. This level has previously acted as resistance, especially at $0.6421 in mid-June.
ADA rebounded to $0.65 after falling to $0.61 on June 14, turning resistance into potential support. According to the analysis, holding this area will be crucial for any sustained bullish momentum.
Cardano chart provided by MyCryptoParadise
ADA entry strategy and upside targets
TradingView analysts recommend a cautious but strategic approach. Aggressive traders can consider entering near the current price, but risk management is crucial as the risk-reward ratio is limited.
More conservative traders are advised to wait for a potential pullback to the $0.63-0.64 support area. A confirmed bounce from this area would provide a clearer entry opportunity and more favorable risk parameters.
On the upside, ADA has an initial resistance level below $0.67. A breakout above this level could pave the way for an upside move to $0.70, which would imply a potential 10.62% gain from the current price.
However, analysts warn that the bullish signal would be invalidated if the price closes below the $0.6200 invalidation level. In this case, traders should wait for a new market structure to emerge before re-entering the market. .
Cardano Derivatives Data Shows Cautious Optimism
Derivatives and on-chain indicators show a cautiously optimistic outlook for ADA. The trading volume surged 45.36% to $1.26 billion, which is usually a sign of rising prices. While the overall long-short ratio was 0.9391, major platforms such as Binance (2.6765) and OKX (2.4) showed a strong bullish bias.
Funding rates remained positive, indicating confidence among leveraged long traders. Sentiment remained stable despite a 4.07% drop in open interest to $747.58 million. Long liquidations totaled $1.6 million, while short liquidations totaled only $236,000, highlighting continued bullish pressure.
However, option volumes plunged 92.94%, indicating reduced institutional activity and lower expectations for short-term volatility. Nonetheless, the overall market structure favors a potential recovery as there are no signs of a major bearish reversal.
