Evaluating Cardano's latest market shift and the effect on ADA's price action

Cardano’s TD Sequential indicator flashed a buy signal on the hourly chart
Altcoin’s hourly price action registered a downtrend on the charts

Cardano [ADA] hinted at a potential rebound on the charts, as buying pressure followed a bullish technical signal on 28 February. Needless to say, this development has sparked renewed interest in the crypto’s price movement.

Possible bullish or bearish scenarios have emerged too, aiding strategic decisions. This analysis is aimed at equipping traders with data-driven perspectives on the altcoin’s future movements.

Assessing market reversal signals

Cardano’s TD Sequential indicator hinted at a buy signal on the hourly chart. The chart revealed a price of $0.6510, with a prior drop from $0.6950 to $0.5900. An arrow at 09:00 marked the buy signal, following a decline from $0.6500 to $0.6000.

Source: Ali Charts

This pattern pointed to a reversal after nine bearish candles. In fact, traders may also expect a rebound to $0.6700-$0.6800, if momentum holds on.

Conversely, a failure to break $0.6600 could push ADA to $0.5800. The similarity to past buy signals at $0.6180 hinted at a recurring bullish set-up. Hence, long-term, sustained buying could target $0.7000 on the charts.

Analyzing price action for confirmation

Before its latest bout of recovery, Cardano’s hourly price action underlined southbound movement from $0.6955 to $0.6431. The 9-26 EMA Cross remained bullish too, with values at $0.6431 and $0.6342.

Source: CoinGlass

However, the MACD indicators at 0.0033, 0.0061, and 0.0027 hinted at a potential bullish crossover. Key support levels rested at $0.6180 and $0.5870, while the resistance stood at $0.6784.

If the $0.6431-level holds, ADA may climb towards $0.7000. Conversely, a drop below $0.5870 could drive the price to $0.5500. The MACD’s past bullish cross near $0.6180 mirrored the prevailing setup, reinforcing the potential for an upward shift.

Evaluating network activity and price correlation

Cardano’s active addresses dropped to 24.4k on 28 February from a peak of 90k in December 2019. In fact, the chart highlighted a decline from 60k in January to 30.4k recently, with the crypto’s price falling from $1.4 to $0.633.

Source: Artemis

Such a fall alluded to lower network activity, potentially pulling the price south. A rebound might occur if addresses rise to 30k, pushing the price to $0.7000.

Conversely, a drop to 20k could drive ADA to $0.5000. The pattern resembled the January dip from 40k to 30k, often preceding recoveries. In the long-term, increasing activity to 40k could support a sustained bullish trend.

Evaluating network activity and price correlation

Finally, Cardano’s netflows hit $699.28k on 28 February, after fluctuating between -$40M and $20M. The chart saw net outflows of -$20M recently, with the price at $0.633.

Source: CoinGlass

Inflows peaked at $20M when the price hit $1.20. This netflow surge suggested buying pressure, potentially lifting ADA to $0.8000. A reversal to -$40M outflows could drop the price to $0.5000.

The pattern echoed the November 2024 inflows at $1.00, often leading to rallies. Long-term, consistent inflows above $1M might drive ADA to $1.00, while outflows could test $0.4000 support levels.

Cardano’s ADA exhibited signs of a potential rebound, supported by technical signals and market trends. However, sustained buying and greater network engagement remain critical for long-term recovery.

Source: https://ambcrypto.com/evaluating-cardanos-latest-market-shift-and-the-effect-on-adas-price-action/