Cardano’s ADA Remains Bullish Despite 25% Dip, but This Support Must Hold to Sustain Upside Hopes
The cryptocurrency market experienced a significant dip yesterday, with Cardano’s ADA token being no exception. ADA plunged more than 25% within 24 hours, dropping from $0.59 to $0.45 before closing the day at $0.50, forming a substantial red candlestick on the charts.
Amidst this sharp decline, Trend Rider, a popular crypto analyst, took to Twitter to address concerns about ADA’s potential bearish turn. In a thread, they aimed to calmly assess the facts and provide insights into the situation.
Trend Rider began by highlighting two crucial points: “There were 2 consecutive Take Profit Signals from our indicators, warning us weeks ago to TAKE PROFITS. However, the Trend is Still Bullish: Wave is still green.”
This observation suggests that while technical indicators had previously signaled the need to take profits, the overall trend for ADA remained bullish, as indicated by the “green wave” on the analyst’s charts.
The analyst then drew attention to a critical support level, stating, “Price is right now testing the trend support (wave lower limit).”
Explaining the implications, Trend Rider emphasized, “Unless price starts trading below 0.44USD, the only thing that is going on right now is that price is testing trend support.”
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Show more +This testing of support levels is a common occurrence in market cycles and can present opportunities for traders. As Trend Rider noted, “This happens from time to time, is not nice, but also it provides great opportunities for traders.”
However, the analyst acknowledged that ADA’s trajectory could be influenced by the performance of Bitcoin, the leading cryptocurrency. “Bitcoin at the same time is testing its Parabolic line,” Trend Rider stated. “If it fails to hold, then most probably $ADA will keep going down, but this has not happened yet.”
Sharing their personal strategy, Trend Rider revealed, “I personally bought some at 0.48USD and will wait patiently for bullish signals from our indicators to buy a larger size.”
The analyst encouraged followers to stay tuned for their weekly ADA analysis, mentioning that a potential buy zone had been drawn a few weeks ago.
As the cryptocurrency market navigates these turbulent times, analysts and investors alike are closely monitoring key support levels and indicators to gauge the potential for further downside or a potential bullish reversal. In the case of ADA, the defense of the $0.44 support level could prove crucial for maintaining upside hopes and the overall bullish trend.
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