If the altcoin turns the $0.342 support barrier into a resistance level, the bullish argument will be disproven.
The last two weeks have seen significant weight loss for Cardano as the crypto markets gave in to bearish pressure. While the long-term picture is still unclear, day traders will probably have the chance to buy ADA.
Cardano price ready to make a move
Between May 7 and May 11, Cardano’s price plummeted by about 10%, from $0.385 to $0.342. Our earlier article foresaw this decline and stated that a local bottom might form inside the bullish breaker, from $0.348 to $0.361.
As previously mentioned, Cardano’s price wholly complied with this zone; as of this writing, it has recovered 4.30%. Traders can establish long positions during a continuous drop before ADA sparks a positive rise in less than twelve hours when the New York trading day opens.
Targets for Cardano price growth, if this positive trend continues, are $0.375, $0.382 and $0.395. The final level is about 10% below ADA’s current price.
The 30-day Market Value to Realised Value (MVRV) model lends more support to this bullish forecast for the price of Cardano. The average profit or loss of investors who acquired ADA over the previous month is calculated using this on-chain indicator.
According to Sentiments analysis, a rating below -10% signifies that short-term investors are experiencing losses and are less likely to sell. Most of the time, this is where long-term holders gather. Thus, a move below -10% is referred to as being in an “opportunity zone.”
The 30-day MVRV indicated an “opportunity zone” or bottom formation when the price of Cardano declined, which is consistent with the technical picture. Given that this zone has been intact since June 2022 and has repeatedly delivered reliable local bottoms, a rise in purchasing pressure is therefore probable.
While the long-term outlook for Cardano price appears positive, continuous selling will be encouraged if there is an unexpected increase in selling pressure that causes ADA to turn the $0.345 support level into a barrier. By doing so, the so-called “Ethereum-killer” would no longer support the bullish argument, and a 5.65% decline to $0.324 would ensue.