Cardano (ADA) Price Analysis Eyes $0.90 as the Market Stands on Its Solid Ground

As the crypto market stands on its solid ground hours before the FOMC meeting, Cardano is creating a bullish pattern. Currently, the ADA token

Crypto traders are anticipating the upcoming FOMC meeting as the crypto market showcases resilience. Among the prominent tokens, Cardano is displaying a potential inverted head-and-shoulders pattern, hinting at a possible breakout.

Cardano Price Analysis: Technical Indicators Point to Potential Bearish Shift

As Cardano price today hovers around $0.6798, a surge of 2.51% over the past 24 hours, the token is showing signs of a potential turnaround.

After finding support at the 50% Fibonacci level of $0.6362, Cardano attempted to rise but faced resistance at the 50-day EMA line, resulting in a lower high. However, the short-term price action is forming an inverted head-and-shoulders pattern.

At present, Cardano is forming the right shoulder, with the neckline at least the 38.20% Fibonacci level of $0.7437. The 100 and 200 EMA lines are also closely grouped, and a potential negative crossover could occur if the price breaks down.

In the MACD indicator, the MACD and signal lines have crossed over, and the technical indicator is showing signs of a potential bearish shift. However, it’s worth noting that the recent lower price reaction has created a bullish engulfing candle, which could indicate a potential recovery.

If Cardano price manages to rise above the $0.7437 neckline, it could aim for the 23.60% Fibonacci level of $0.90. This price level is significant as it could increase the possibility of Cardano reclaiming the $1 mark.

However, if the price breaks down below the $0.6362 support level, it could test the $0.5542 level, the lowest point of the recent swing low.

Optimism Rises in ADA Derivatives

While Cardano price analysis reveals short-term risks, derivatives data from the past four hours indicate a gradual shift in optimism. Long positions have surpassed the 50% mark, balancing the playing field with short positions.

Currently, the long-to-short ratio stands at 1.028, according to the data from Coinglass. Additionally, the funding rate has reached a new peak at 0.0078%, further highlighting the bullish sentiments.

If the uptrend continues and pushes Cardano price above $0.692, the ADA exchange liquidation map suggests a $3.01 million cumulative short liquidation. This liquidation will likely trigger a domino effect, fueling the bullish trend in Cardano prices.