Cardano price is rallying on strong bullish engulfing candles backed by rising volume, signaling healthy momentum and increasing the probability of continuation toward higher resistance.
Summary
- Bullish engulfing candles with increasing volume confirm strong buying momentum.
- Reclaims of the value area low and point of control signal structural improvement.
- Acceptance above the value area high could drive continuation toward $0.48.
Cardano (ADA) price has entered a renewed bullish phase, with recent price action showing strong continuation characteristics. The rally has been driven by a sequence of bullish engulfing candles, each supported by increasing volume, a combination that typically reflects strong conviction from buyers.
This move follows a successful retest of key value levels after a deviation from major support, suggesting the market has transitioned from correction to expansion.
As price now trades near the upper boundary of value, the technical outlook favors further upside if momentum conditions remain intact.
Cardano price key technical points
- Bullish engulfing candles backed by volume: Strong buyer aggression confirms momentum continuation.
- Value area low and point of control reclaimed: Structural improvement supports the bullish bias.
- $0.48 emerges as the next key upside target: Acceptance above value area high would open continuation.
One of the most constructive signals in Cardano’s recent move has been the presence of consecutive bullish engulfing candles. These candles indicate decisive buying pressure, where buyers fully absorb prior selling and close price strongly higher. Importantly, these patterns have not appeared in isolation, they have been consistently supported by rising volume.
From a technical perspective, increasing volume during bullish engulfing formations suggests genuine participation rather than short-lived speculation. This kind of price–volume alignment is often seen during trend continuation phases, reinforcing the view that Cardano’s rally is structurally sound rather than corrective.
Support deviation and reclaim set the base
The current rally began after a deviation below the $0.34 high-timeframe support, followed by a swift retest. Deviations below key support often act as liquidity events, shaking out weak hands before price reverses higher. In Cardano’s case, the quick recovery signaled that demand was present at discounted levels.
Following this reclaim, the price moved back above the value area low, confirming acceptance within the value rather than below it. This transition is critical, as it often marks the shift from accumulation to expansion. Once price re-enters value and holds, the probability of a rotation toward higher volume nodes increases significantly.
Point of control break strengthens structure
Another significant development has been the reclaim and confirmation of the point of control (POC). The POC represents the price level with the highest traded volume in the recent range and often acts as a pivotal decision point. Cardano not only broke above this level but also executed a strong back-test, confirming it as support.
This behavior reflects a clear improvement in market structure, as buyers are now willing to pay higher prices. With the POC reclaimed, the path of least resistance shifts upward, favoring a continuation toward the upper boundary of the range.
Volume remains the key confirmation
While the technical structure is clearly bullish, continuation will depend on sustained volume inflows. Bullish engulfing candles without volume would raise concerns about exhaustion; however, current conditions show the opposite. As long as volume remains elevated and candles continue to close decisively higher, the probability of further upside remains high.
A slowdown in volume or failure to hold above reclaimed levels would be the first warning signs of momentum weakening.
What to expect in the coming price action
Cardano’s technical outlook remains firmly bullish as long as price holds above the reclaimed point of control and value area low. Continued acceptance above the value area high would likely trigger a continuation move toward $0.48 in the short term.
Bullish engulfing candles and rising volume suggest strength is genuine, not speculative. However, momentum must be maintained; any loss of volume or failure to hold reclaimed levels would increase the risk of consolidation.
For now, price action, structure, and volume all favor further upside.
Source: https://crypto.news/cardano-price-rallies-on-bullish-engulfing-candles/
