According to crypto analyst Ali from Ali Charts, the TD Sequential indicator has issued a buy signal on Cardano’s ADA daily price chart. This development anticipates a potential short-term rebound, ranging from one to four days, which could mark the end of the ongoing corrective phase for ADA.
What you'll learn 👉
Analyzing the Recent Price Movements
The ADA chart, shared by Ali, began with a price of approximately $0.45. It then reached a peak of nearly $0.64 in early April, before undergoing a decline. The lowest price, recorded towards the end of April, was around $0.39. However, by early May, ADA’s price had slightly recovered to about $0.45.
The chart featured predominantly red candlesticks during mid-April, signaling a bearish trend with closing prices lower than opening prices. A notable large green candlestick towards the end of the chart indicates a robust recovery, with the price opening near the low and closing near the high of the day. This suggests a potential shift in market sentiment.
Key Levels and Trends
The price found strong support at approximately $0.39, halting its decline and indicating substantial buying interest at this level. Conversely, the resistance at around $0.64 has been a significant barrier, where selling pressure has previously halted upward movements.
High volatility characterizes the cryptocurrency market, as seen in ADA’s significant price fluctuations. This volatility presents both high return opportunities and increased risks. The recovery noted by the large green candlestick could attract additional buying interest, especially if investors believe the price has bottomed out.
The established support at $0.39 is crucial; if it holds during future tests, it could reinforce confidence in ADA’s stability at this price level. However, breaking below this support might lead to further declines.
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Show more +Looking Forward
If ADA maintains its recovery momentum, it may attempt to challenge and possibly overcome intermediate resistance levels, approaching the major resistance like the one near $0.64. On the other hand, ADA could enter a consolidation phase, where the price stabilizes within a narrower range as the market seeks direction. This phase would allow investors to reassess their positions amid ongoing market dynamics.
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