Market Overview for Cardano/Yen (ADAJPY) as of 2025-11-07

Summary
• Price surged from 79.96 to 83.88, ending at 83.50, a 4.43% gain.
• RSI crossed into overbought territory, and momentum remained strong.
• Volume spiked near key resistance levels, confirming bullish continuation.
• Bollinger Bands widened, indicating heightened volatility.
• Bullish Engulfing and strong RSI aligned near a 61.8% Fibonacci level.

Market Overview for Cardano/Yen (ADAJPY)

Cardano/Yen (ADAJPY) opened at 79.96 on 2025-11-06 at 12:00 ET-1 and surged to a high of 83.88 before closing at 83.50 at 12:00 ET today. The 24-hour volume totaled approximately 5.8 million, with a notional turnover of roughly 489.9 million yen. The asset appears to be in a high-momentum phase driven by strong accumulation near key resistance levels and rising on-chain activity.

Structure & Formations

ADAJPY exhibited a robust bullish structure, with multiple Bullish Engulfing patterns emerging in the late hours of the 24-hour period. Key support levels held around 80.34–80.58, while resistance levels at 81.01–81.55 were decisively breached. A 61.8% Fibonacci retracement level coincided with a consolidation zone near 82.61–82.92, where price found strong buying interest.

Moving Averages

On the 15-minute chart, the 20-period and 50-period SMAs were in bullish alignment, with price above both. On the daily timeframe, the 50- and 200-period SMAs crossed into bullish territory, suggesting a potential continuation of the uptrend.

MACD & RSI

The MACD histogram showed a widening positive divergence, reinforcing the bullish momentum. The RSI(14) reached overbought territory near 72–74 and remained elevated, signaling continued short-term buying pressure. A potential pullback may occur once RSI exceeds 75, but for now, the momentum remains intact.

Bollinger Bands

Volatility expanded significantly, with Bollinger Bands widening from a tight contraction earlier in the day. Price closed near the upper band at 83.88, indicating strong confidence in the upward move. If the upper band holds above 83.4–83.6, the asset could test 84.0–84.5 in the near term.

Volume & Turnover

Volume surged in the late hours of the 24-hour period, with the largest spikes occurring between 03:15 and 05:30 ET. Turnover aligned with the volume, confirming price action rather than diverging. No signs of distribution or exhaustion were observed, suggesting institutional accumulation may be ongoing.

Fibonacci Retracements

Key Fibonacci levels from the 80.34–83.88 swing were closely followed by the price action. A 61.8% retracement at 82.61–82.92 coincided with a strong consolidation and breakout pattern, confirming the importance of this level. A test of the 78.4–78.6 (38.2% retracement) would signal a deeper correction, though currently seems unlikely.

Backtest Hypothesis

The “RSI Overbought + Bullish Engulfing (3-day hold)” strategy leverages two key signals: RSI(14) exceeding 70 and a confirmed daily Bullish Engulfing pattern. These signals, when aligned, may indicate a continuation of a strong bullish trend. The 3-day holding period allows for sufficient room to capture momentum before assessing for profit or exit. This strategy is particularly relevant in the current context, where RSI remains in overbought territory and multiple Bullish Engulfing patterns have formed recently. While it does not incorporate stop-loss or take-profit rules, it provides a disciplined way to test the strength of the current move.