Ethereum (ETH) competitor Cardano (ADA) is currently sitting in a “key demand zone,” says crypto analyst Ali Martinez.
Martinez tells his 33,800 followers on the social media platform X that 166,470 wallets acquired 4.88 billion ADA worth more than $1.85 billion while the asset has been trading between $0.37-0.38.
“With minimal resistance ahead and solid support below, remaining above this zone could pave the way for ADA to climb to new yearly highs. Still, watch out, as losing this support level could trigger a brief correction to $0.34.”
Martinez also notes that the Tom DeMark (TD) Sequential indicator presented a sell signal on ADA’s weekly chart. The TD Sequential indicator is used by traders to predict potential trend reversals based on the closing prices of the 13 previous bars or candles.
Explains the analyst,
“Losing the $0.37 level as support could trigger a correction toward $0.34 or $0.33. ADA must close above $0.40 to advance toward $0.46!”
Martinez also says the indicator is flashing a short-term bullish signal, however.
“Look how the 100-EMA (exponential moving average) on the four-hour chart has acted as a rebound zone for ADA while the $0.396 level acts as a stiff resistance.
The TD Sequential now presents a buy signal within this time frame around the 100-EMA, anticipating another rebound. However, you must pay attention to a four-hour candlestick close above the $0.396 resistance or below the 100-EMA to confirm the direction of ADA trend.”
ADA is trading at $0.381 at time of writing.
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Source: https://dailyhodl.com/2023/11/29/cardano-could-print-new-2023-highs-as-over-1800000000-in-ada-accumulates-at-current-levels-trader/