Cardano’s Rollercoaster: Will the Bulls Finally Take the Reins? 🎢

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  • Cardano seems to be teetering on the edge of a bearish cliff, according to the 1-day chart.
  • Meanwhile, Santiment data suggests that everyone and their dog has been accumulating since April.

Ah, Cardano [ADA], the cryptocurrency that has been stuck in a range since December, like a cat in a cardboard box. Over the last three weeks, it has formed a miniature range near its long-term lows, which is a bit like finding a penny in the couch cushions—nice, but not exactly life-changing. The buying pressure? Oh, it was there, but the momentum? Not so much. 😅

On the 1-day chart, the Bollinger Bands were as wide as a kid’s smile on Christmas morning, indicating some volatility was lurking about. Despite being trapped in a three-week range, the token had a bullish market structure at the time of writing. This miraculous flip happened after it managed to reclaim the range low at $0.68 as support—like a phoenix rising from the ashes, or perhaps just a cat jumping back into the box.

Then came the rally in early May, establishing a bullish trend with a higher low at $0.74. But lo and behold, at the time of writing, ADA was trading below this level, threatening to shift into a bearish structure. Talk about a plot twist! 📉

In fact, the price was below the 20-period moving average, which is like a warning sign saying, “Caution: Bearish short-term momentum ahead!”

Cardano bulls have their work cut out for them

The short-term range (white) climbed from $0.73 to $0.84, with the mid-range level at $0.78. The Bollinger Bands were tighter than a pair of jeans after Thanksgiving dinner as the price slowly sank towards $0.73 over the last five days.

The moving averages were waving their bearish flags on the H4 chart. Trading volume has been on a decline since May 24, and sellers have been dominating like a toddler with a toy. The OBV’s gentle decline is just the cherry on top of this bearish sundae.

Now, if the price drops to $0.71-$0.725, it might just offer Cardano bulls a buying opportunity—though it feels a bit like trying to catch a falling knife. Yikes! 🔪

Finally, Santiment data revealed that short to medium-term holders are sitting pretty with tidy profits. The 90-day MVRV is at a delightful 26.5%. However, long-term investors are not exactly throwing a party, with the 365-day MVRV sitting at a mere 8%. Talk about a buzzkill!

This situation raises the specter of profit-taking from medium-term holders. If they decide to sell, we might see a flurry of on-chain movement, which could be as chaotic as a cat chasing a laser pointer.

On the bright side, the MCA has been trending sharply higher since the second week of April, which is encouraging for investors. The latest price decline didn’t come with a dramatic wave of selling, which is a relief. It seems the bulls are strong enough to defend the $0.73 range low. If they can keep this up, Cardano might just be ready to break free from its short-term range highs. Fingers crossed! 🤞

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2025-05-30 09:47