The price of Cardano (ADA) near the key support as an analyst to buy signal
Cardano's (ADA) price is close to $0.37, a key support area for the coin as altcoins decline. One analyst says the 4-hour chart shows a buyable signal for ADA. Flipping on-chain metrics can also help with Cardano's reboot.
As cryptocurrencies bounced back on Monday, Cardano (ADA) fell below $0.38 again, pushing the altcoin to support levels after its price surge last week. But is the ADA ready for recovery?
A crypto analyst shared the below prediction on X.
Analyst points to ADA buy signal
While the general bearishness in the market could see sellers trying to extend their arms, the crypto analyst said a buy signal for ADA has been made on the 4-hour chart. Which technical indicators support the analyst's take?
Here is the prophecy.
“Look at how the 100-EMA on the 4-hour chart has formed a recovery zone for $ADA and the $0.396 level is acting as strong resistance,” Ali said in a post on X.
According to the analyst, there is a buy signal for the ADA in the 4-hour time frame, while the highlighted 100-EMA continues to act as an important retracement area. However, traders may want to look for the Cardano price candlestick on the 4-hour chart.
He explained.
“The TD sequence now offers a buy signal around the 100-EMA in this time frame, expecting another rebound. But you should pay attention to the 4-hour candlestick above the $0.396 resistance or below the 100-EMA to confirm the direction of the #ADA trend.”
#Cardano | Look at how the 100-EMA on the 4-hour chart has formed a recovery zone for $ADA, but the $0.396 level is acting as strong resistance.
The TD sequence now provides a buy signal around the 100-EMA in this time frame, expecting another rebound. However, you have to pay… pic.twitter.com/bi4Lzg4rUr
— Ali (@ali_charts) November 27, 2023
Despite Cardano's price drop on the day and over the past seven days (roughly 1.4% and 2% respectively), the overall view is that ADA remains bullish. From a technical perspective, several on-chain metrics support upward progression.
Cardano Net's Realized Profit/Loss (NPL) and Market Value to Real Value (MVRV) ratio recently flashed green, an outlook aided by the cryptocurrency's decentralized growth.
The Blockchain Network also recently launched an AI chatbot and EMURGO announced a partnership with the Blockchain Institute as part of the project's Web3 Education and Expansion.
