Cardano Breaks Bearish Structures | BITmarkets
Insights Analysis Cardano Breaks Bearish Structures

Cardano Breaks Bearish Structures

July 16, 2024 Analysis
BITmarkets | Cardano Breaks Bearish Structures

Riding a 20% climb in a week's time, Cardano (ADA) is exhibiting bullish price behaviors that may indicate the breakage of bearish patterns which persisted since March of 2024.

It was only a matter of time before the necessary parameters were met to enter buying positions for not only Cardano but also other major cryptocurrencies. So, is it time to buy yet?

Daily time frame analysis

ADA11.1

ADAUSD - 1 Day Time Frame

A fundamental element for traders to build their positions on is liquidity. The corrective move ensured the accumulation of early buy orders from market participants, including large and small speculators who placed their Stop Loss and Sell Stop orders below the support zone and the Fair Value Gap (FVG) on the 3-month time frame.

This zone, shown in blue on the chart, saw the price drop impulsively below it, providing the initial Sell-Side Liquidity selection. Consequently, commercial market participants could enter the market with buy orders, paired with the Sell Stops from other participants.

For retail traders, following the initial liquidity selection, it is crucial to wait for the price to show the next necessary parameter confirming a purchase.

In this case, there has been the formation of an Order Block (OB) on the weekly time frame, an Inversion Fair Value Gap, or a new support zone that was previously resistance, along with a Break of Internal Structure.

When to buy Cardano?

It is possible to place a covering SL order aggressively below the internal low or safely below the external low of the newly formed bullish structure. This strategy aims to progressively target the External Buy-Side Liquidity.

Join

Try to invite your friends and earn together

10% of trading fees of your friends and 5% from the earnings of your friends.

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Policy

Cookies settings


Cookie Control


What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.


If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.


If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies


Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns