- ADA rebounded somewhat from a yearly low of $0.3
$0.3 support remains crucial; nearly 540k addresses bought ADA at the level
As a seasoned researcher with a keen eye for detail and a heart that beats for the crypto market, I find myself always on the lookout for trends and patterns that could potentially shape the future of our beloved digital assets. The recent performance of Cardano [ADA] has been nothing short of a rollercoaster ride, with its latest dip to a yearly low at $0.27 followed by a 6% rally on Tuesday, August 7.
2024 saw me witnessing a fresh yearly low for Cardano [ADA], dipping to $0.27 and shattering the previous low set in June at $0.31. Interestingly, both the June and August rebound points for ADA were observed above the $0.3 mark on the charts.
After experiencing some tough price fluctuations, Cardano (ADA) surged by approximately 6% on August 7, Tuesday. At the time of writing, it had gained an additional 1%, according to 24-hour charts. With crypto trading at $0.33, it appeared poised to capitalize on the broader market’s ongoing recovery.
Hence, the question – What are the key levels to watch out for in the recovery rally?
Key ADA levels to consider
As a crypto investor, I noticed that the recent market downturn, reminiscent of the ADA dump in June, found a respite at a crucial weekly resistance level marked by a breaker block around $0.3. This significant price point has previously sparked bullish interest in November 2023 and more recently in 2024, suggesting that it could be a potential turning point for the market’s recovery.
If ADA resumes its upward trajectory, there are two potential optimistic milestones to keep an eye on. The first potential goal would be reaching the 78.6% Fibonacci level, approximately $0.36. This could represent a nearly 9% increase if achieved. Additionally, retesting the trendline resistance might lead to a jump of roughly 29% compared to the breakout point.
At the current moment, I’m observing a lack of strong buying momentum based on my technical analysis. This is indicated by the Relative Strength Index (RSI) and Chaikin Money Flow (CMF), which are suggesting below-average buying strength and capital inflows.
As a researcher, I’d sum up my findings this way: If Bitcoin doesn’t push beyond the $60k mark, I anticipate the potential recovery point to align with the 78.6% Fibonacci level.
However, a drop below the demand and breaker block at $0.3 could accelerate ADA’s dump too.
Majority of addresses bought ADA near $0.3
If the price of the altcoin falls below $0.3, it could lead to a significant selling spree since about 540,000 investors bought the coin when it was priced between $0.3 and $0.22. This large number of holders, collectively possessing approximately 5.56 ADA, might feel compelled to sell quickly to minimize their losses, potentially causing a downward price spiral.
In the meantime, investors in the Futures market, particularly those with amplified long positions on Cardano (ADA), have reduced their holdings significantly.
Between August 2nd and 6th, as per Coinglass’s Long/Short ratio, there was a rise in the proportion of leveraged long positions from 46% to 49%.
Read Cardano Price Prediction 2024 – 2025
Contrarily, at the time of reporting, there was a slight decrease in the figure, which suggests that the Future market isn’t overly optimistic about ADA at the moment.
In short, ADA could see slow recovery, but the $0.3 support remains crucial.
Read More
- JASMY PREDICTION. JASMY cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- Top gainers and losers
- MONG PREDICTION. MONG cryptocurrency
- ELK PREDICTION. ELK cryptocurrency
- LOKA PREDICTION. LOKA cryptocurrency
- CLV PREDICTION. CLV cryptocurrency
- WOOF PREDICTION. WOOF cryptocurrency
- GOAL PREDICTION. GOAL cryptocurrency
- LUNA PREDICTION. LUNA cryptocurrency
2024-08-08 08:07