Crypto analyst Ali Martinez has pointed out that Cardano (ADA) has entered into a key demand zone, a development that could bode good news for the price. According to the analysis, this key demand zone currently lies between $0.37 and $0.38, making a breakout likely.
Cardano Key Demand Zone
In the chart shared by Ali, he points out that the key demand zone is between $0.37 and $0.38 mainly because of the widespread accumulation that took place in this region. A total of 166,470 wallets had purchased around 4.88 billion ADA at these price levels, making it their entry price.
This massive accumulation at these levels also means that investors have registered significant support here as well, which would serve to hold the price up. Additionally, Ali points out that resistance above this level is also minimal. “With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs,” Ali said.
Source: @ali_charts on X
However, the analyst also warns investors to be careful of this level because despite there being a lot of support, falling below this level could prove disastrous for the price. “Still, watch out, as losing this support level could trigger a brief correction to $0.34,” he warned.
ADA sitting at $0.372 | Source: ADAUSD on Tradingview.com
ADA Price Could Barrel Toward $0.46
In another post, the crypto analyst revealed that the Cardano TD Sequential indicator had presented a sell signal on the weekly chart. Like with any asset, this can point toward more downside in the future of the asset. This is even more threatening if the digital asset were to lose the previously identified support at $0.37. As the analyst points out, a fall below this support could send the ADA price spiraling toward the $0.33 to $0.34 levels.
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Author: Best Owie
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