Crypto: An Imminent Return Of Buyers For Cardano? Technical Analysis Of October 31, 2024

After a significant drop, Cardano enters a consolidation phase. Let’s explore the potential developments for ADA together.

Situation of the Cardano (ADA) Price

After experiencing a decline of 66%, Cardano reached a low point at $0.276. As stated in the analysis from September 5th, it is at this price level that buying interest for the cryptocurrency resumed. Since this interest, ADA has entered a consolidation period, marking resistance at $0.40 and support at $0.30. The price of Cardano is thus forming higher lows, suggesting a possible structural change ahead. In the short term, it appears that the cryptocurrency has recently broken below a range period situated below the monthly pivot point and is currently performing a retest of the latter.

At the time of writing this text, the price of Cardano is trading around $0.35. It is interesting to note that this price level falls within the previous range, which was around the monthly VWAP and an important value area, highlighting the significance of this level. Although notable buying interest is present, the medium-term trend of the cryptocurrency remains bearish, as evidenced by Dow’s theory and the 50 and 200-day moving averages. Regarding Cardano’s bullish dynamics, it seems subtly supported, as demonstrated by the oscillators and the price of ADA itself.

The current technical analysis has been conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (ADAUSDT)

The open interest in ADA/USDT perpetual contracts has timidly followed the price of its underlying asset, suggesting a market supported by a majority of buyers. This hypothesis is reinforced by positive funding rates. However, the CVD has been revised downwards, paradoxically indicating notable selling interest in Cardano’s perpetual contracts. Regarding liquidation data, it is observed that there have been very few liquidations since the last peak, which affected long positions during the last drop of the crypto towards $0.31. This demonstrates a balanced market where buyers and sellers seem to be in agreement with the current direction.

The liquidation heatmap for ADA/USDT shows that Cardano has recently bounced off an important liquidation zone, just below $0.32, which seems to have attracted buyers. Now, there are liquidation zones above the current price, first at $0.37, then around $0.39, and a bit below $0.42. Downwards, a subtle zone is near $0.34. The approach of these levels could trigger significant order volume and increase the volatility of the crypto. These levels are therefore crucial points of interest for investors.

Forecast for the Cardano (ADA) Price

• If the price of Cardano remains above $0.30, we could consider a target of $0.40. In the event of breaking this resistance, the cryptocurrency could reach $0.45. If this bullish movement continues, a level of $0.50 would become possible, marking an increase of over 40%.

• If Cardano fails to stay above $0.30, a pullback towards $0.28, or even $0.27, could occur. The next key support, in the event of a continued decline, is around $0.24, with a risk of dropping to $0.22, representing a drop of approximately 39%.

Conclusion

Cardano shows signs of recovery with supports backed by rising buying interest, but the underlying trend remains bearish, confirmed by the medium-term technical indicators. The current price zone is therefore crucial in determining whether a genuine trend reversal is possible. Thus, it remains essential to closely monitor the price’s reaction at key levels to validate or adjust current forecasts. Finally, let’s remember that these analyses are based solely on technical criteria, and the price of cryptocurrencies can change rapidly due to other more fundamental factors.