Cardano Looks Ready for an Upswing to $1
Key Takeaways
Cardano has retraced by more than 26.5% in the past two weeks.
Now, one technical indicator suggests that a bullish impulse is underway.
ADA must hold above $0.92 to be able to surge to $1.
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Cardano appears to be trading at a vital support level that has attracted many buyers. As long as it continues to hold, ADA has a chance of rebounding toward $1.
Cardano Hints at a Rebound
Cardano is holding above a significant demand zone while buy signals are starting to appear.
ADA has retraced by more than 26.5% over the past two weeks. The spike in profit-taking occurred after Cardano hit a high of $1.25 on Apr. 4, which saw prices decline to $0.92. The Layer 1 platform, which is hoping to compete with the likes of Ethereum and Solana, is now consolidating around this price point, signaling that a bullish impulse could be underway.
The Tom DeMark (TD) Sequential indicator has presented a buy signal on ADA’s daily chart. The bullish formation developed as a red nine candlestick, which is indicative of a one to four daily candlesticks upswing. Rising upward pressure around the current price levels could help validate the optimistic outlook and push Cardano toward $1.
Transaction history shows that Cardano has built a strong foothold at around $0.92. Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, more than 44,790 addresses have previously purchased nearly 6.8 billion ADA around this price level. The significant demand zone could prevent prices from dipping lower, helping validate the bullish thesis.
Nonetheless, a bullish impulse around the current price levels could meet stiff resistance at $1, where 241,000 addresses hold nearly 4 billion ADA. A daily candlestick close above this hurdle could lead to higher highs.
It is worth noting that Cardano must avoid printing a daily close below $0.92 as this could lead to investors exiting their long positions. If this support level is breached, ADA could experience a sell-off that sends it $0.80 or lower.
Disclosure: At the time of writing, the author of this piece owned ETH and BTC.
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