More On: cardano
Cardano NEWS: ADA Crypto Network Expands ADA adds over 450,000 wallets in Q1 2022 with New Fund and Research Initiative
Large-scale transactions on the Cardano blockchain have surged dramatically, as reported by IntoTheBlock.
This suggests an increase in demand from financial institutions. Whale sightings have also increased, according to Santiment. More over half of the addresses on the network, on the other hand, are in the red, which means they are losing money on ADA. What does this mean for the price of Cardano in the next weeks?
ADA daily chart
ADA's long-term market structure was bearish from September until early March, when it was in a significant downturn. Bitcoin's price has surged beyond $1 in recent weeks, breaking out of a descending wedge formation (white). In the past, the $1 level has served as both a technical and psychological barrier.
However, the bulls were able to break through this resistance, retest it, and go toward $1.26. By late December, the price had fallen to a bearish order block around $1.38 (seen in red).
If ADA is able to get over $1.26 and $1.4, the next target would be $1.6-$1.62 in the north.
Bullish trend and good demand have been reflected in recent weeks' indications. The RSI climbed to 73, but there was no sign of a bearish divergence on longer timeframes. Even more impressive was the rise in the Awesome Oscillator's value over the zero line. Bullish momentum was evident in both cases.
With a Chaikin Money Flow of 0.17, it was clear that demand had increased over the previous month. This has been accompanied by a spike in the OBV over the last few weeks. But this was not enough to break through the orange level, which was the OBV's most recent lower high.
Cardano's indicators indicated that there was room for more gains. It's also possible that huge market participants will quit the markets in the $1.26-$1.4 range just as retail enters on a wave of new enthusiasm. Long-term investors should be aware of the possibility that this is the exit point for a large decline.
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