Recently, the third-generation token Cardano has performed excellently, attracting the attention of many. This unexpected move has allowed the ADA price to break free from the downward consolidation and triggered a significant rise of over 150%, but it has failed to reach the mid-term milestone of $1. Although trading volume remains within a high range and traders have strengthened activity on the platform, reaching $1 for the ADA price may still be a daunting task.
The technical outlook of the spot market remains bullish, as prices continue to strengthen during the consolidation phase, forming a bullish flag. This could mean that prices may break through $1, surpassing the key resistance level of $0.81. However, closely observing the futures market, traders remain hesitant about the next price movement, as the tokens face equal long and short liquidations.
After a considerable period, the accumulation of long and short liquidations also indicates that short-term investors or day traders are performing well. Their increased activity has raised volatility, attracting new buying volume and pushing prices up to the current range. However, from a broader perspective, the price of Cardano is expected to face a slight pullback, with varying probabilities of reaching $1 in the short term.
As the price continues to trade within a bullish range, three key points need to be emphasized in the above chart. First, the cumulative volume delta (CVD) is forming lower lows while prices are forming higher highs. Second, in the past few days, there has been an increase in open interest and a continuous increase in bids for the token.
CVD indicates the difference in trading volume between buyers and sellers, suggesting that sellers may gradually outperform buyers. However, the increase in open interest supports the bullish narrative, but from a broader perspective, a pullback might hinder the progress of the rebound. However, if the price of Cardano (ADA) successfully breaks through the key resistance level of $0.8, then after breaking through the final resistance level of $0.95, the cryptocurrency is expected to reach $1.
