Cardano has plummeted nearly 55% from its all-time high at $3.10.
The downtrend could reach exhaustion, with one indicator turning bullish.
A spike in upward pressure can push ADA towards $1.80.
Share this article
Cardano may be poised to rebound as it reached a significant demand wall. If buy orders begin to pile up, ADA might have the strength to resume its uptrend.
Cardano Flashes Buy Signal
Cardano appears to have hit a local bottom after plummeting nearly 55% from a record high of about $3.10 set in early September.
The sixth-largest cryptocurrency by market cap entered a steep correction shortly after recording a new all-time high. It appears that investors took advantage of the milestone to book profits, adding fuel to the retracement.
Now that Cardano has dropped to a four-month low of $1.41, the downtrend could be about to reach exhaustion.
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 or the beginning of a new upward countdown.
Transaction history shows that a spike in buying pressure could push Cardano towards $1.80. But first, the smart-contracts token must slice through the $1.60 resistance level. IntoTheBlock’s IOMAP model shows that over 93,000 addresses have previously purchased more than 2 billion ADA around this price level, making it a tough nut to crack.
Only a decisive daily candlestick close above $1.60 would lend credence to the optimistic outlook presented by the TD setup.
On the other hand, the IOMAP cohorts show that nearly 128,000 addresses hold over 2.8 billion ADA between $1.48 and $1.53. Breaching such a significant demand wall could put Cardano at risk of a steeper correction, invalidating the bullish thesis.
If this were to happen, prices could likely dive to $1.25 or even $1.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
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 and Tron Will Soon Be Removed From eToro
Trading app eToro has announced that it will remove Cardano (ADA) and Tron (TRX) from its listings before the end of the year. Policy Will Hit eToro Users in December…
Solana Looks Ready to Overtake Cardano’s Market Cap
Solana appears to be gearing up for a bullish impulse while Cardano sits on weak support. Data shows that SOL might only need $1 billion in total market value to…
How SocialGood Is Offering 100% Crypto Cashback on Online Shopping
In recent years, the rise of Bitcoin and tokenized assets has made the cashback vertical ripe for disruption. Within the cashback market, blockchain-based loyalty networks are rising in popularity among…
Cardano Undervalued Relative to Ethereum: Grayscale Report
According to a research report by Grayscale, the world’s largest digital currency asset manager, Cardano could be undervalued given its significant growth in adoption over the last 12 months. Cardano…