Cardano bulls reclaim control: Is ADA on the path to $0.9?

Key Indicators for Short-Term Strength

Volume and speculative interest will be essential in assessing short-term strength.
The 1-day chart indicates Cardano (ADA) has potential, especially with Bitcoin poised for a rally.

Cardano (ADA) bulls successfully climbed above the $0.75 level, reclaiming it as support, which flipped the 1-day and 4-hour structures bullishly.

Currently, Bitcoin (BTC) has been around the $107k mark for over a day, with a threat to break beyond its all-time high of $108.7k. This could energize the market, including Cardano. At press time, the Long/Short Ratio stood at 0.97, with taker buy volume lacking the strength to signal strong short-term conviction.

Data indicated that most accounts were positioned long; however, their sizes were likely negligible.

Next Target: $1 Level

Cardano dipped below the long-term low at $0.69 but reclaimed it as support by early May, allowing ADA bulls to maintain recovery. The breach of the $0.756 level was significant, as it marked a swing high in mid-March during the drop from $1.15 to $0.55.

A move surpassing these highs, followed by a recent retest as support, was a positive indicator for buyers. The bullish outlook also reflects in the sub-structure. The On-Balance Volume (OBV) trend shows increased demand for the token in recent weeks. The Relative Strength Index (RSI) has tested the neutral 50 as support and shows signs of climbing further.

If ADA manages to rise, it may target mid-range resistance at $0.9. On the 4-hour chart, the swing structure appears bullish, with crucial swing points at $0.648 (May) and $0.84 (few days later). Having recovered from $0.72 suggests a prevailing bullish trend.

The descending trendline resistance was broken, alongside overcoming the recent lower high at $0.743. Both the OBV and RSI indicate bullish momentum.

Cardano’s outlook appears positive on multiple fronts, with sustained demand required to drive prices higher. Traders should monitor for increased volume around breakouts and keep watch on Bitcoin’s performance.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and reflects the writer’s opinion.