Here’s Why You Must Buy Cardano When Others Are Selling
Amid the crypto bloodbath, Cardano (ADA) bulls face a massive blow. With the ADA price down to 100-day EMA, will buyers manage to absorb the incoming supply waves?
The sudden bearish shift in Cardano breaks under the $1 psychological mark and is now hinting at an extended correction rally. However, the minor shift in crypto winds is signaling a potential recovery run to cross above $1.
Analyst Reveals Cardano Buying Opportunity with TD Sequential
Amid the increasing sell-off, the lower price rejection plays a critical role. A recent X post from Ali Martinez, an independent crypto analyst reveals a buy signal in Cardano.
Using the TD sequential technical indicator, the massive bearish engulfing candle with the lower price rejection signals a potential rebound. Highlighting the possibility of a bearish exhaustion, it could lead to a quick comeback in Cardano prices.
Cardano Price Analysis Paints $0.844 Support as Last Bullish Hope
In the daily chart, the ADA price trend reveals two consecutive bearish candles. The lower price rejection in the intraday candle highlights a retest of the 100 EMA line at $0.885.
The correction phase breaks under the 50 EMA line and reveals a bullish failure to reclaim the $1 psychological mark. With the recent correction, the downfall in the RSI line extends towards the oversold zone.
Furthermore, the 20 and 50 EMA lines are on the verge of giving a negative crossover. Thus, the momentum indicator and the dynamic average lines reveal a surge in selling pressure.
Currently, Cardano trades at a market price of $0.885 and tests the previous support and puts pressure over the existing support level of $0.844. While the RSI line shows no bullish divergence, the low price rejection hints at a potential comeback.
However, the broader market volatility could result in a bearish continuation. Using the trend-based Fibonacci levels, a potential comeback will likely detest the $1.057 level.
However, a closing price below the 100 EMA or the $0.844 support level will likely retest the 200 EMA line. This dynamic support level at $0.711 will be the next potential price target.
Brownie Points: Minor Recovery in Cardano Network
As the Cardano price volatility reveals high-speed moves, the network witnesses a minor recovery. The transactions over the Cardano network have increased from 10.09K to 14.09K over the weekend.
However, the unique active wallets over the past week have witnessed a significant fall. From the 7-day high of 3.84K, the unique active wallets are down to 2.82K.
Conclusion
As Cardano hovers near critical support at $0.844, the next few days will be pivotal in determining its trajectory. While the TD Sequential indicator hints at a potential rebound and minor network recovery offers a glimmer of hope, broader market volatility and bearish pressure could still push prices toward the $0.711 support level. A decisive move above $1 will be key to regaining bullish momentum and avoiding further downside.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.