- Cardano is currently presenting a TD buy signal on the daily chart.
- Cardano is down 10% ahead of the general market dip.
- Cardano’s technical analysis shows a solid breakout from a downtrend.
Despite a sharp decline in Cardano (ADA) price, it now looks set to rebound as it flashes a TD Sequential buy signal on the daily chart. TD Sequential aims to find trend exhaustion (and reversal) points.
A green ‘9’ candle on the daily chart generally signals a buying opportunity. Selling pressure seemingly has run its course.
The daily chart for ADA/USD presented here depicts an impressive extent of downgrading salt to the wound, eventually trading down to $0.876, a loss of 8.08% for the day.
The TD Sequential’s buy signal is at the bottom of this downward move and hints at an immediate relief rally.
While the appearance of this buy signal doesn’t guarantee an immediate reversal, it should imply that bullish momentum is starting to run out.
If the buyers come in enough for a while, ADA could see a temporary upward movement before deciding on a more sustainable trend for investors.
The cryptocurrency market will remain highly volatile, so traders should exercise patience before using this indicator to enter or exit a trade.
Cardano Price Down 10% Ahead of General Market Dip
Like the broader market, Cardano price has plunged double digits. According to CoinMarketCap, Cardano’s price dropped as low as $0.85 before recovering slightly to $0.923. It enjoys a market capitalization of $32.46 Billion, down 10% over the past 24 hours.
However, a surge in the trader’s 24-hour volume by 168.10% to $1.3 Billion proves that many buy ADA at low prices.
On the hourly chart on Binance, we see a cascading price drop, followed by a bounce from a low of around $.869. The TD Sequential buy signal on the daily chart supports this bounce and is consistent with a possible reversal.
Further, the volume oscillator shows a massive spike in trading activity, which usually precedes volatility.
Bitcoin’s struggles to support key levels may have added to the mix of external factors that sent ADA plunging.
Since most altcoins tend to follow Bitcoin’s price movements, we are likely seeing ADA price action based on how the market is feeling.
In addition, macroeconomic considerations like interest rate increases and rising inflationary pressures also remain a concern in general, including cryptocurrencies.
Cardano Technical Analysis Showing a Solid Bullish Breakout
Technical analysis-wise, Cardano price has been in a healthy downtrend, marked by lower highs and lower lows. Viewed from the one-hour Binance chart, a steep selloff makes a descending wedge, a reversal setup.
According to the latest data, ADA has been consolidating the $0.92 region, indicating buyers are entering.
If ADA breaks the $0.94-$0.95 resistance area, the major target is $1.00, with a psychological spot at $1.05. Yet, if current levels are not maintained, a retest of recent lows at about $0.85 would not be a surprise.
If this breaks down below this level, it could prompt more selling and send ADA into more support.
Bitcoin price action will be the key thing to watch. However, if BTC finds stability or begins to recover, that may push ADA higher, too.
Another leg down in Bitcoin’s price would invalidate the buy signal and continue with bearish pressure.
Source: thecoinrepublic.com
