Recently, the third-generation token, Cardano, displayed a vibrant move that raised many eyebrows. The unexpected move freed the ADA price from the descending consolidation and triggered a huge rise of over 150% but failed to reach the interim milestone at $1. Although the volume remains within the higher range and traders intensify their activities over the platform, still reaching $1 could be a tedious job for the ADA price rally.
The technicals of the spot market remain bullish as the price continues to gain more strength as it consolidates, forming a bull flag. This could suggest a potential breakout beyond $1, surpassing the crucial resistance at $0.81. However, a closer look into the futures suggests the traders remain indecisive over the next price action as the token faces an equally short and long liquidation.
The piled short & long liquidations after pretty long periods also indicate the short-term investors or the intra-day traders to have played out well. The rise in their activity increased the volatility, which attracted fresh buying volume, raising the price to the current range. However, from a wider perspective, the Cardano price is believed to face a small pullback that may differ in the possibility of reaching $1 shortly.
3 main points need to be highlighted in the above chart as the price continues to trade within the bullish range. Firstly, the cumulative volume delta (CVD) countries form lower lows while price forms higher highs. Secondly, the rise in the open interest and the growing ‘bids’ for the token in the past few days.
The CVD, which indicates the difference in the volume of buyers and sellers, suggests the sellers may slowly outperform the buyers. However, the rise in the open interest supports the bullish narrative, but from a wider perspective, a pullback may hinder the progress of the rally. However, if the Cardano (ADA) price manages to rise above the pivotal resistance at $0.8, then the crypto is believed to achieve $1 after clearing the final resistance at $0.95.
