On-chain metrics show investors are still buying the Cardano price, are bulls in denial?

• Cardano price is down 25% for the month of November.
• Several technical factors suggest ADA’s downtrend is not yet over, but on-chain metrics show bulls are still interested.
• A breach of the $0.35 resistance zone could induce a countertrend rally into the $0.39 price territory.

Cardano price next move will likely define the trend for weeks to come. The technicals suggest bears are in control, but on-chain metrics show traders are still buying. Key levels have been defined to gauge ADA’s next move..

Cardano price in make-or-break  

Cardano price shows signals that warrant concern as the bears may attempt to obliterate the $0.30 support zone. Since the start of the month, ADA, the self-proclaimed Ethereum killer token, fell by 25%, and since the decline, all bullish attempts to recover have been rejected.  Now, a bearish penant pattern surrounds the ADA price, which could send the smart-contract token to sub-$0.30 price levels.

Cardano price currently auctions at $0.325. Like several top cryptos, the surged 8-day exponential moving average plays a key role in resistance against the bulls. The volume profile indicator shows a persistent tapered look which suggests high-cap players are sidelined and would rather join the next directional move rather than speculate on where the congestion zone will send the ADA price next.

ADA USDT 3-Hour Chart

Despite the bearish technicals, retail traders are still hopeful for an ADA bounce. Coinglass’s Long/Short Ratio suggests six out of every ten traders are currently positioned Long as of November 18

Coinglass's Long vs. Short Indicator

If the market is genuinely bullish a persist, a rally toward the $0.39 congestion zone will be a key target for bulls to aim for. Such a move would result in an additional 22% increase in price. 

Still, the pennant pattern surrounding the current ADA price will need to be invalidated before confidently aiming for higher targets. A breach above the $0.35 (above the 8-day exponential moving average) could induce the uptrend rally toward higher targets that bulls are hoping for. 

In the following video, our analysts deep dive into the price action of Cardano, analyzing key levels of interest in the market. -FXStreet Team

 

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