- Cardano displayed a bearish momentum divergence on the daily chart.
- The liquidation map and $0.787 resistance could lead to a minor price dip.
As a seasoned crypto investor with years of experience under my belt, I’ve seen my fair share of market fluctuations. While Cardano [ADA] has been on a stellar bull run lately, the recent bearish momentum divergence on the daily chart and the looming $0.787 resistance have me slightly concerned.
On a daily and weekly basis, Cardano [ADA] displayed a robust bullish trend. Over the last seven days, this altcoin has seen a surge of approximately 38%, and since its lowest point on November 4th, it has experienced a significant increase of around 146.7%.
Over the last seven days, I’ve observed a 5% surge in Bitcoin [BTC]. Considering this momentum, there might be a brief correction around the $90k mark over the weekend. This potential dip could present an opportune moment for traders to invest in Cardano by going long.
In the long term, both Cardano and Bitcoin remain strongly bullish.
Cardano price prediction
Last week’s weekly chart indicated that Cardano reached a fresh 2024 peak. As of now, it seems poised to maintain its upward trajectory.
On November 11th, the $0.6 region, anticipated as a potential barrier, briefly halted price advancement, causing a minor pullback. However, this resistance was breached within a few days, allowing Cardano to surge up to $0.819.
On the weekly scale, the Relative Strength Index (RSI) reached 79.25, suggesting a strong upward trend. However, a bearish divergence hasn’t appeared on the weekly graph yet. Instead, it has been developed on the daily chart.
This was a concern as Cardano bulls fought to reclaim the $0.787 level as support.
There could have been a slight drop down to $0.705, but on the other hand, the On-Balance Volume (OBV) has been surging quickly throughout November, indicating an uptick in the token’s demand.
More reasons for ADA’s dip
The 30-day liquidation plan showed a significant number of long positions for liquidation were clustered in the range between $0.741 and $0.781.
If the cost drops down to this point, it might trigger a significant amount of sell orders (liquidations) and possibly cause a more substantial drop towards approximately $0.726.
Read Cardano’s [ADA] Price Prediction 2024-25
This thought aligns with the RSI showing bearish divergence on the daily graph, while the price is also below the significant resistance level of $0.787.
This dip might provide investors with another chance to buy stocks (go long) and could potentially lead to positive results in the near future.
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2024-11-20 16:07