Journalist
Posted:
- Cardano displayed a bearish momentum divergence on the daily chart.
- The liquidation map and $0.787 resistance could lead to a minor price dip.
Cardano [ADA] was strongly bullish on the daily and weekly timeframes. The altcoin has rallied 38% over the past week and is up by 146.7% since the lows set on Monday the 4th of November.
Over the past week, Bitcoin [BTC] has rallied 5%. It could be due for a minor dip toward $90k over the weekend that traders could use to go long on Cardano.
In the long term, both Cardano and Bitcoin remain strongly bullish.
Cardano price prediction
Source: ADA/USDT on TradingView
The weekly chart showed that Cardano had set a new high for 2024 last week. At press time, it appeared set to continue to uptrend.
The $0.6 zone, which was expected to serve as resistance, forced a minor rejection on the 11th of November. It was overcome a few days later, and Cardano was able to rally to $0.819.
On the weekly chart, the RSI was at 79.25 to indicate intense upward momentum. A bearish divergence was not seen on the weekly chart but has formed on the daily chart.
This was a concern as Cardano bulls fought to reclaim the $0.787 level as support.
A minor dip to $0.705 was possible. Meanwhile, the OBV has been rising swiftly in November to reflect increased demand for the token.
More reasons for ADA’s dip
Source: Coinglass
The 30-day liquidation map revealed that many long liquidation levels were present in the $0.741-$0.781 region.
A price dip into this area can sweep a sizeable quantity of liquidation levels and could potentially lead to a deeper slump toward $0.726.
Read Cardano’s [ADA] Price Prediction 2024-25
This idea has confluence with the RSI bearish divergence on the daily chart and the price trading below the key resistance level at $0.787.
Such a dip would offer buyers another opportunity to go long and could be a healthy outcome in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
