- Cardano (ADA) price is near $0.37, a key support area for the coin as altcoins decline.
- An analyst says the 4-hour chart shows a potential buy signal for ADA.
- A rebound for Cardano could also be helped by a flip in on-chain metrics.
As cryptocurrencies pulled back on Monday, Cardano (ADA) saw its price drop below $0.38 again, pushing the altcoin to a support level seen as prices rose last week. But is ADA poised for a rebound?
A crypto analyst shared the forecast below on X.
Analyst points to ADA buy signal
While the overall declines across the market might see sellers attempt at extending their grip, a crypto analyst says a potential buy signal for ADA is formed on the 4-hour chart. What technical indicators support the analyst’s take?
Here’s the prediction.
“Look how the 100-EMA on the 4-hour chart has acted as a rebound zone for $ADA while the $0.396 level acts as a stiff resistance,” Ali noted in a post on X.
According to the analyst, there is a buy signal for ADA within the 4-hour time frame, with the highlighted 100-EMA continuing to act as a crucial rebound area. Nonetheless, traders might want to be keen on Cardano price’s candlestick close on the 4-hour chart.
“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 4-hour candlestick close above the $0.396 resistance or below the 100-EMA to confirm the direction of #ADA trend.”
The TD Sequential now presents a buy signal within this time frame around the 100-EMA, anticipating another rebound. However, you must pay… pic.twitter.com/bi4Lzg4rUr
— Ali (@ali_charts) November 27, 2023
It’s notable that despite Cardano price being marginally in the red on the day and this past seven days (roughly 1.4% and 2% respectively), the overall outlook is that ADA remains in an uptrend. Other than the technical perspective, a number of on-chain metrics support an upside continuation.
Cardano’s Net Realized Profit/Loss (NPL) and Market Value to Realized Value (MVRV) ratio have recently flashed green, with the outlook helped by bullish developments in the cryptocurrency’s decentralisation.
The blockchain network also recently launched an AI chatbot and EMURGO just announced a partnership with the Institute of Blockchain as part of the project’s Web3 education and expansion.