Recent insights from market analyst Ali Charts indicate that Cardano (ADA), a prominent cryptocurrency, is undergoing a bearish phase. In the past 24 hours, ADA has seen its trading price drop by 2.8%, descending to the $0.37 mark. Despite this downward trend, Ali maintains an optimistic stance on Cardano’s potential, projecting that it may be on the cusp of a substantial price rally that could set new records for the year.
In a detailed analysis, Ali Charts points to a pivotal demand zone for ADA, straddling the $0.37 to $0.38 range. The analyst observed that within this zone, there is significant buying activity, with records showing over 166,470 wallets have made ADA purchases. This area, according to Ali, represents a stout support level, reinforced by the high demand from investors.
With limited obstacles in the way, the analyst posits that holding steady above this support could set a foundation for ADA’s value to soar, aiming to eclipse its annual peak price of $0.4518. Even so, Ali underscored the importance of vigilance among investors, noting that a slip below this stronghold could send ADA’s price cascading down to a lower threshold, possibly around $0.34.
The current trajectory for ADA paints a varied picture. Over the past week, the cryptocurrency has dipped nearly 5%, continuing this decline within a 24-hour timeframe with a 2.5% fall, settling the trading price near $0.378. This latter figure carries extra weight as it closely matches the strong support level underscored by Ali Charts.
On the other side of this coin, however, lies a more hopeful vision. Over the last month, ADA registered a 29% ascension, and even with a minor adjustment for the past fortnight, it still boasts a 3.2% uptick. Amid these developments, ADA’s daily trading volume has experienced peaks and valleys, recently marking $255 million—a sharp descent from the $600 million volume observed mid-month.
While ADA’s recent performance could be interpreted as a short-term setback, Ali’s analysis and the broader market movements suggest a window of opportunity for resurgence. For investors keeping a watchful eye on ADA’s movement, the upcoming days could determine whether the cryptocurrency will indeed reverse the bearish tide and chart a course to new heights.