Key points to remember
- Cardano is down over 26.5% in the past two weeks.
- Now, a technical indicator suggests that a bullish impulse is underway.
- ADA must hold above $0.92 in order to climb to $1.
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Cardano appears to be trading at a vital support level which has attracted many buyers. As long as it continues to hold, ADA has a chance to rebound towards $1.
Cardano hints at a rebound
Cardano is holding above a strong demand zone as buy signals start to emerge.
ADA is down more than 26.5% over the past two weeks. The spike in profit taking occurred after Cardano hit a high of $1.25 on April 4, which saw prices fall to $0.92. The Layer 1 platform, which hopes to rival Ethereum and Solana, is now consolidating around this price level, signaling that a bullish impulse may be underway.
The Tom DeMark (TD) Sequential Indicator presented a buy signal on the ADA daily chart. The bullish formation developed as a red nine candlestick, which indicates a rise of one to four daily candlesticks. Growing upward pressure around current price levels could help validate the bullish outlook and push Cardano towards $1.
Transaction history shows that Cardano has established itself firmly at around $0.92. Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, more than 44,790 addresses have already purchased nearly 6.8 billion ADA around this price level. The large demand zone could prevent prices from plunging lower, helping to validate the bullish thesis.
Nonetheless, a bullish impulse around current price levels could meet strong resistance at $1, where 241,000 addresses hold nearly 4 billion ADA. A daily candlestick close to this hurdle could lead to higher highs.
It should be noted that Cardano should avoid printing a daily close below $0.92 as this could lead investors to exit their long positions. If this support level is breached, ADA may experience a selloff that sends it $0.80 or lower.
Disclosure: At the time of writing this article, the author of this article owned ETH and BTC.
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