Cardano has retraced by more than 26.5% in the past two weeks.
Now, one technical indicator suggests that a bullish impulse is underway.
ADA must hold above $0.92 to be able to surge to $1.
Share this article
Cardano appears to be trading at a vital support level that has attracted many buyers. As long as it continues to hold, ADA has a chance of rebounding toward $1.
Cardano Hints at a Rebound
Cardano is holding above a significant demand zone while buy signals are starting to appear.
ADA has retraced by more than 26.5% over the past two weeks. The spike in profit-taking occurred after Cardano hit a high of $1.25 on Apr. 4, which saw prices decline to $0.92. The Layer 1 platform, which is hoping to compete with the likes of Ethereum and Solana, is now consolidating around this price point, signaling that a bullish impulse could be underway.
The Tom DeMark (TD) Sequential indicator has presented a buy signal on ADA’s daily chart. The bullish formation developed as a red nine candlestick, which is indicative of a one to four daily candlesticks upswing. Rising upward pressure around the current price levels could help validate the optimistic outlook and push Cardano toward $1.
Transaction history shows that Cardano has built a strong foothold at around $0.92. Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, more than 44,790 addresses have previously purchased nearly 6.8 billion ADA around this price level. The significant demand zone could prevent prices from dipping lower, helping validate the bullish thesis.
Nonetheless, a bullish impulse around the current price levels could meet stiff resistance at $1, where 241,000 addresses hold nearly 4 billion ADA. A daily candlestick close above this hurdle could lead to higher highs.
It is worth noting that Cardano must avoid printing a daily close below $0.92 as this could lead to investors exiting their long positions. If this support level is breached, ADA could experience a sell-off that sends it $0.80 or lower.
Disclosure: At the time of writing, the author of this piece owned ETH and BTC.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Cardano Whales on Buying Spree
On-chain data reveals that institutional players and whales have been adding significant amounts of ADA to their portfolios. Cardano Whales Accumulate Heavily Institutional interest in Cardano appears to be picking…
Cardano Rallies 16%, Breaking Months-Long Downtrend
Cardano has continued its recent rally, gaining 14.8% today. The ADA token’s inclusion in a new Grayscale fund and Coinbase enabling Cardano staking have likely contributed to the token’s upward…
New Cardano DEX Hopes to Overcome Chain’s Scaling Woes
AdaSwap, a new ecosystem builder on Cardano, announced Tuesday that it had raised $2.6 million to build “the best, decentralized exchange on Cardano.” AdaSwap Raises $2.6M to Build First Working…