- Cardano currently sits at a key demand zone between $0.37 and $0.38, with over 160,000 wallets having acquired close to five billion ADA at this level.
- If ADA stays above this rate, it could be on its way to new highs as it closes out the year, but losing this support could set the token up for a dip down to $0.34.
Cardano (ADA) is sitting on a key demand zone and remaining above this zone could pave the way for the Ethereum rival to set new yearly highs as we approach the close of 2023, one analyst says, citing data from blockchain analytics platform IntoTheBlock.
At press time, ADA is trading at $0.3732, shedding 2.4 percent in the past day and maintaining the same price level over the past week. Its trading volume has increased marginally to hit $287 million, and with a market cap of $13.2 billion, it remains firmly perched in the top 10 cryptocurrencies in the market.
According to one cryptocurrency analyst, ADA”s current price level is critical to its ability to shoot up towards the end of the year. The analyst, known in crypto circles as Ali, says that $0.37-$0.38 is a “key demand zone” where over 166,000 wallets acquired a combined 4.88 billion ADA, worth $1.82 billion at current market rates.
The analyst added:
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.
However, losing the $0.37 support could set the stage for further pullback, the analyst warned. He pointed out that the Tom Demark (TD) sequential indicator presents a sell signal on the weekly ADA chart. TD indicators are used by analysts to anticipate a potential turning point in an asset’s price.
He added, “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!”
#Cardano | The TD Sequential indicator presented a sell signal on $ADA weekly chart. 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! pic.twitter.com/ZSE2Uu3aZG
— Ali (@ali_charts) November 27, 2023
What Next for Cardano (ADA)?
The Tom Demark indicator also indicates a short-term bullish signal, the analyst adds, citing one particular four-zone.
“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,” he told his followers.
He added:
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.
Meanwhile, Cardano continues to be one of the most important digital assets for institutional players in the space., This importance will only rise in the coming months, especially with the launch of perpetual futures for ADA from America’s largest exchange Coinbase. Perpetual futures allow traders to speculate on the future price of assets for an unspecified amount of time.
The Coinbase perpetual futures will begin trading tomorrow, November 30th, and will make the asset available to a wider range of sophisticated investors with massive warchests.
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