Convergence

Cardano

bullish

View

ADA is currently eyeing an inverted hammer formation on its weekly chart, but a significant sell wall threatens a roadblock to any potential rally. 
Cardano (<a href="https://crypto.news/price/cardano/" target="_blank" rel="noreferrer noopener">ADA</a>) has continued to witness a <a href="https://crypto.news/cardano-price-seeing-most-bearishness-as-altcoins-rebound/" target="_blank" rel="noreferrer noopener">downward</a> push following its 8% collapse last week. However, the potential formation of the inverted hammer offers a glimmer of hope. An inverted hammer shows potential buying pressure overcoming early selling. 
<figure class="wp-block-image size-full">
 <picture fetchpriority="high" decoding="async" class="wp-image-14288465"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/Cardano-Weekly-Chart.png.webp"> 
 <img fetchpriority="high" decoding="async" width="1858" height="822" src="https://crypto.news/app/uploads/2024/07/Cardano-Weekly-Chart.png" alt="Cardano bulls face potential 4b ADA sell wall preventing its rally - 1"> 
 </picture> 
 <figcaption class="wp-element-caption">
 ADA weekly chart, September 2023 – July 2024 | Source: <a href="https://www.tradingview.com/" data-type="link" data-id="https://www.tradingview.com/" target="_blank" rel="">Trading View</a>
 </figcaption>
</figure> 
While this pattern typically suggests a possible trend reversal from bearish to bullish, confirmation is necessary with a subsequent bullish candle. However, ADA’s technicals show mixed signals, with slim chances of such a bullish candle. 
Notably, the Average Directional Index is at 22.33, indicating a weak trend. An ADX below 25 suggests that the current trend lacks strength, which means that any price movement may be majorly influenced by short-term market sentiment.&nbsp; 
The Moving Average Convergence Divergence lines also show bearish momentum, but hint at a potential shift. The MACD line is currently at -0.0263, just below the signal line at -0.0182, with the histogram slightly negative. A MACD crossover could indicate a bullish shift, but this remains to be seen. 
 You might also like: <a href="https://crypto.news/us-spot-ether-etfs-end-4-day-negative-flow-streak-with-33-7m-in-inflows/"> US spot Ether ETFs end 4-day negative flow streak with $33.7m in inflows </a> 
<h2 class="wp-block-heading" id="cardano-faces-potential-sell-wall">Cardano faces potential sell wall</h2> 
Meanwhile, <a href="https://crypto.news/these-altcoins-are-set-to-surge-in-2024-cardano-rollblock-and-avalanche/" target="_blank" rel="noreferrer noopener">Cardano</a> bulls would need to battle a sell wall between $0.4208 and $0.4740&nbsp;if a bullish candle is going to form for the asset. This sell wall consists of 4.84 billion ADA held by 445,330 addresses. 
<figure class="wp-block-image size-full">
 <picture decoding="async" class="wp-image-14288466"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/07/Cardano-Sell-Wall.png.webp"> 
 <img decoding="async" width="1503" height="507" src="https://crypto.news/app/uploads/2024/07/Cardano-Sell-Wall.png" alt="Cardano bulls face potential 4b ADA sell wall preventing its rally - 2"> 
 </picture> 
 <figcaption class="wp-element-caption">
 ADA In/Out map, July 31 | Source: <a href="https://app.intotheblock.com/coin/ADA/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="">IntoTheBlock</a>
 </figcaption>
</figure> 
The sell wall forms a massive resistance zone that ADA must overcome to continue any upward momentum. This resistance is substantial and will require significant buying volume to break through. The current price just below this range suggests that traders are aware of the barrier. 
If the inverted hammer on the weekly chart is confirmed, it could pave the way for a bullish reversal. However, the sell wall shows a challenging obstacle.&nbsp; 
Buyers must generate significant momentum to break this resistance and push the price higher. On the downside, failure to confirm the bullish indicators could see the price retesting lower support levels around $0.30 to $0.35. ADA is currently trading at $0.4014, down 4.28% in the last week. 
Positive sentiments around the Cardano ecosystem could play a role in strengthening the buying pressure. One development capable of triggering such bullish sentiments is the <a href="https://x.com/IOHK_Charles/status/1777037687653892128" target="_blank" rel="">Chang hard fork</a>. The pivotal update requires 70% of Cardano stake pool operators to transition to the latest node, 9.1.0. At the time of writing, only 9.3% have <a href="https://cardanoscan.io/changreadiness" target="_blank" rel="">transitioned</a>. 
 Read more: <a href="https://crypto.news/xrp-mega-breakout-rally-but-not-60000/"> XRP might rally, but likely not 60,000% </a>

Cardano bulls face potential 4b ADA sell wall preventing its rally

Table of Contents

crypto.news

Autres articles publiés le 31 juil. 2024

Key Highlights from Nashville Bitcoin Conference 2024

Analyst Predicts Major Rallies for PEPE, WIF, and POPCAT

PePe Moonraker Presale: Can $PMRK Achieve 1000x Gains Like PepeCoin?

Crypto Titan Van De Poppe States Trump’s Speech Is Very Positive for All Cryptos While DTX Emerge...

Whale Activity on Binance Sparks Speculation Over Massive USDT Transfers

XRP might rally, but likely not 60,000%

Join our free newsletter for daily crypto updates!