Focus on Cardano: ADA's position amidst structural trend and potential growth

Cardano, the popular cryptocurrency, is currently exhibiting a constructive chart pattern that suggests a potential upward movement.

The price of Cardano is moving within a wide ascending channel, a bullish sign that indicates the possibility of continued growth. This channel has served as a reliable support multiple times, with the 50-day Exponential Moving Average (EMA) acting as a key support level. At the moment, Cardano is holding onto this EMA, reinforcing the bullish outlook.

The Moving Average Convergence Divergence (MACD) is another indicator that points towards a waning negative momentum for Cardano. The MACD is continuing to build positive momentum in the 4-hour chart, suggesting a shift in the market sentiment towards the positive. In contrast, the MACD was suggesting a waning negative momentum earlier, but it has now reversed this trend.

The Relative Strength Index (RSI) is another important indicator that is currently bullish for Cardano. The RSI has not consistently fallen below the 50-point mark, a significant level that usually indicates a bearish trend. Instead, it has remained above this level, indicating a strong buying pressure. Moreover, the RSI has bullishly broken above the average line in the 4-hour chart, further strengthening the bullish outlook.

Interestingly, the RSI in the 4-hour chart for Cardano has not formed a lower low over the past month, despite price pullbacks. This indicates consistent buying interest, another positive sign for Cardano's price movement.

Another interesting development is the predominance of liquidity on the upside for Cardano, as indicated by the heatmap. This could generate additional upward pressure, potentially leading to a significant upward surge. In the current price range, there is a predominance of short delta in Cardano's liquidation levels, which could further contribute to the upward pressure.

However, it's important to note that the prerequisite for an upward movement in Cardano is that Bitcoin maintains its stability or initiates an upward movement to support the market as a whole.

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In conclusion, the combination of these factors suggests that the conditions for an upward movement are present for Cardano. Each upward movement results in new highs for Cardano, and if the price manages to sustainably break above both the 50 EMA and the white trendline in the 4-hour chart, a significant upward surge could be triggered.