Cardano Bulls Gain Momentum as Liquidity Flows In

Cardano (ADA) has been trading in a tight range since early February, with its price oscillating between $0.73 and $0.82. However, recent developments suggest that the tide may be turning in favor of the bulls as liquidity begins to flow into the market.

Two key momentum indicators, Chaikin Money Flow (CMF) and Balance of Power (BoP), have been signaling a growing bullish bias. The CMF, which measures liquidity flows into and out of an asset's market, has been climbing despite ADA's price consolidation. At press time, it was above the zero line at 0.20, indicating significant buying pressure. Meanwhile, the BoP, which measures the strength of buyers versus sellers, was at 0.65, suggesting that buying pressure is stronger than selling pressure.

If this trend continues, ADA could soon break its current range and reclaim prices above $1, setting the stage for a potential rally. If demand strengthens, ADA could exchange hands at $1.32, a high it last reached in December. However, a surge in profit-taking activity could cause a break below this range, potentially pushing ADA's price down to $0.60.