ADA has been in macro bearish trend making lower highs for almost two years now. Reclaiming the 637 satoshi mark on a weekly and daily closing basis would go a long way in turning that around for the Cardano price. But first thing is first.
While most majors have left their yearly bottoms to try to challenge the last major lower high ADA has lagged behind however looking at the chart this looks to change soon. Clear signs of demand can be seen on the aggressive bottom buying and looking at the volume itself it’s clear that buying has exceeding selling where most sell offs have been low volume sell offs but buying pressure has been high.
The first point of contention sits at 523 sats and the chart suggest that in the coming days bulls will take a shot at it as they build up momentum. By looking at the other majors which typically follow each other and the price action itself it is likely this one will be overcome but the real test remains at 637 and is unlikely to fall on the first attempt.
The weekly chart also shows that selling pressure has been dwindling off and has slowly been replaced with buying pressure. The chart looks like many of the alts prior to their moves out of the range. It doesn’t suggest yet that there is going to be a true macro reversal but the mid term outlook is looking bullish.
Bulls will likely be looking to buy the dips on a break north of 523 and looking to buy the restest. Price seems to suggest that it will want to challenge the last major lower high at 637 which will likely be defended heavily considering the strength of the moves in 2017 off that mark as well as it being a key spot in regards to market structure itself. Outlook short and mid term therefor is bullish.
Potential drivers of the Cardano price could be staking from the Shelley update coming this month, but it’s important to remember that in a bear market price can’t exceed the last lower high otherwise structure wouldn’t exist.
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Pentoshi is a macro trend trader who specializes in price action technical analysis utilizing high time frame pivots. A full time Crypto trader who is now directing focus on trading education.
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