The eighth-largest cryptocurrency by market capitalization, Cardano (ADA), is displaying conflicting signals on a number of timescales, such as the weekly and four-hour charts.
On the four-hour chart, the TD Sequential shows a buy signal, according to Ali, suggesting that there may be an impending comeback.
https://x.com/ali_charts/status/1729187783028219939?s=20
In the meantime, the same TD sequential indicator displayed a sell signal on the ADA weekly chart. In this instance, a decline to $0.34 or $0.33 may result from losing the $0.37 level as support. Conversely, in order to get closer to $0.46, ADA has to close over $0.40.
As of the time of writing, Cardano’s value was declining, reflecting broader reductions in the cryptocurrency market. Cardano is down 2.86% as of right now, trading at $0.3735.
The next price direction is still very important as bulls wait for the next big rise. Ali advises ADA traders to monitor the four-hour candlestick that is either below the 100-EMA at $0.35 or slightly above the $0.396 resistance to determine the direction of the ADA trend.
ADA sits in demand zone
The $0.40 barrier proved too strong for Cardano to overcome, discouraging short-term traders from taking profits.
Presently, Cardano is trading in a significant demand range of $0.37 to $0.38, with 166,470 wallets obtaining 4.88 billion ADA. Staying above this range, in Ali’s opinion, might allow the ADA to reach new annual highs.
The lower end of the demand zone, $0.37, may draw buyers if the present declines in ADA persist. The bulls may then try again to break over the $0.40 barrier if the market rebounds off this level strongly. Should they succeed, ADA could potentially hit $0.46.
Conversely, ADA may drop to $0.34 if the $0.37 threshold is lost. It is important for buyers to monitor this level since a price decline below it might trigger a move towards the daily MA 50 at $0.32.
