160k+ Cardano Wallets Buy 5 Billion ADA Above Key Support, But This Metric Signals Risk – Top Analyst Reveals Critical Prices
Cardano price analyst Ali provided updated outlooks on ADA this week, highlighting mixed bearish and bullish factors at play while revealing key support and resistance levels. Ali notes that Cardano currently sits at a critical demand zone between $0.37 and $0.38, stating:
“#Cardano sits at a key demand zone between $0.37 and $0.38. Here, 166,470 wallets acquired 4.88 billion $ADA. With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs.”
Significant Support Between $0.37-$0.38
According to Ali’s analysis, the $0.37 to $0.38 zone marks a key area of demand. A sizable number of wallets – over 166,000 – accumulated nearly 5 billion ADA tokens in this range. This suggests strong support that could propel an upside breakout if held. Ali notes that with limited overhead resistance, ADA closing above this zone opens the door to new 2023 highs.
However, Ali also highlights downside risks if $0.37 is lost, stating in another tweet:
“The TD Sequential indicator presented a sell signal on $ADA weekly chart. Losing the $0.37 level as support could trigger a correction toward $0.34 or $0.33. #ADA must close above $0.40 to advance toward $0.46!”
Warning Signs and Bearish Targets
The bearish TD Sequential sell signal points to growing risk of an ADA pullback. Failure to maintain the $0.37 support could see prices drop to test levels at $0.34 or $0.33. On the upside, Ali notes #ADA needs weekly closes above $0.40 to confirm bullish momentum back to the $0.46 area.
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It appears Cardano sits at a crucial inflection point that will determine its next major move. Ali reveals key areas both to the upside and downside that traders will want to watch closely. The battle between buyers and sellers wages on, and the technicals suggest ADA’s fate hangs in the balance here.
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