Is Bullish Cardano Set for More Gains?

Over the past two weeks, Bitcoin witnessed a 20% rise in price. The recent surge in Bitcoin has repercussed across the crypto market, and one cryptocurrency which witnessed a monumental rise was Cardano.

1 week time frame

ADAUSD - 1 Week Time Frame

The price of Cardano's ADA has dropped below the $0.240 mark in June, indicating the occurrence of liquidity withdrawal below that level.

This liquidity is defined as a sell-side liquidity, meaning that if market participants decide to buy ADA at this level, the majority of stop loss orders would have been executed at sell stop.

Given prevalent price structures and the recent instant rebalance - which reflects algorithmic buying at discounted prices - the price of Cardano is expected to rise towards the buy-side liquidity level.

4 hour time frame

ADAUSD - 4 Hour Time Frame

When observing Cardano's price movements on the 4-hour time frame, a bullish structure can be seen forming, which supports the view seen on the weekly time frame.

It's worthy to note that besides the current price of ADA lie the equal lows, and the sell-side liquidity occurs below this level.

To form an educated projection for ADA's future move, it's important to look into the Buy-side Imbalance/Sell-side Inefficiency parameter.

If ADA begins to enter correction mode, market participants should pay close attention to how the price behaves.

The order block indicated on the chart represents the lowest zone which can act as a stepping stone for the next bullish impulsive move.

The criterion for maintaining buying positions is that the price does not close below the higher low of $0.393. If that occurs, a deeper price correction is expected to take place.