Cardano Sitting in Key Demand Zone, Says Analyst
Crypto analyst Ali Martinez suggests that Cardano (ADA), a competitor to Ethereum (ETH), is currently in a “key demand zone.” According to Martinez, over 166,470 wallets have acquired more than $1.85 billion worth of ADA while the asset has been trading between $0.37-0.38. Martinez believes that if ADA remains above this support level, it could potentially climb to new yearly highs with minimal resistance ahead. However, losing this support level may trigger a brief correction to $0.34.
TD Sequential Indicator Presents Sell Signal
Martinez points out that the TD Sequential indicator has presented a sell signal on ADA’s weekly chart. This indicator is used by traders to predict potential trend reversals based on previous closing prices. Losing the $0.37 support level could lead to a correction towards $0.34 or $0.33. On the other hand, ADA must close above $0.40 to advance towards $0.46.
Short-Term Bullish Signal
Despite the sell signal on the weekly chart, Martinez mentions that the TD Sequential indicator is flashing a short-term bullish signal for ADA. The 100-EMA on the four-hour chart has acted as a rebound zone for ADA, with the $0.396 level serving as a strong resistance. The indicator suggests another rebound is possible within this time frame around the 100-EMA, but confirmation of the direction of ADA’s trend requires a close above the resistance or below the 100-EMA.
Current Price and Conclusion
As of now, ADA is trading at $0.381. With significant accumulation at current levels and potential for new highs, Cardano remains an interesting cryptocurrency to watch in the market.
Hot Take: Cardano Poised for Potential Upside
Cardano (ADA) has attracted significant accumulation at its current trading levels, indicating strong demand. Analyst Ali Martinez suggests that if ADA can maintain its position above a key support level, it has the potential to climb to new yearly highs. However, losing this support level could trigger a brief correction. The TD Sequential indicator presents a sell signal on the weekly chart, but also a short-term bullish signal on the four-hour chart. This indicates some uncertainty in the direction of ADA’s trend. With the potential for both upside and downside moves, ADA is an asset to keep an eye on in the crypto market.
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