Cardano (ADA) has experienced a sharp decline, but recent data suggests a possible reversal, intriguing investors.
Cardano's Price Drop and Buy Signal
The daily chart for Cardano shows a TD Sequential buy signal, hinting at possible exhaustion of selling pressure. ADA price fell to $0.876, an 8.08% loss for the day. However, this buy signal might indicate the beginning of an upward move.
Current Market Situation
Like the broader market, Cardano has plunged. Its price dropped to $0.85 before slightly recovering to $0.923. A 168.10% spike in trading volume to $1.3 billion shows interest in buying ADA at lower prices. An observed drop to $0.869 was followed by a bounce, supported by the TD Sequential buy signal.
Technical Analysis and Cardano's Prospects
Technical analysis reveals Cardano was in a steady downtrend. Current consolidation around $0.92 suggests rising buyer activity. Breaking the $0.94-$0.95 resistance may lead to $1.00 and beyond. However, a return to recent lows around $0.85 remains possible if current levels aren't maintained.
Technical signals point to potential recovery, but Cardano's price is also influenced by external factors, including Bitcoin's volatility.