Market analyst Ali Charts recently shared insights on the market trajectory of Cardano (ADA). Considering recent trends, ADA appears to be in a bearish phase.
Especially in the last 24 hours, the asset has fallen by 2.8%, bringing its trading price down to $0.37. Despite the current dip, Ali remains offers optimistic outlook, indicating that Cardano may be gearing up for a significant price increase, possibly reaching a high of the year.
Positive Analyst Views on ADA: Understanding the Demand Zone
In an X-post uploaded earlier today, Ali shared his analysis on ADA, highlighting a crucial demand zone around $0.37 and $0.38. The analyst points to the substantial buying activity in this range, with more than 166,470 wallets purchasing ADA at this level.
Ali says this robust demand indicates a strong level of support at these price levels. With minimal resistance on the horizon, Ali’s analyst suggests the ADA could see an increase, potentially surpassing the yearly high of $0.4518.
While the analyst points out that the current buying trend in the demand zone is a positive indicator of ADA’s strength, the analyst also cautions investors to remain vigilant. Failure to hold support in this zone could result in ADA’s price falling to a lower level such as $0.34.
#Cardano is in a key demand zone between $0.37 and $0.38. Here, 166,470 wallets acquired 4.88 billion $ADA.
With minimal resistance going forward and solid support at the bottom, staying above this zone could pave the way $ADA to climb to new annual highs. But be careful, because losing… pic.twitter.com/GDjhspFSVr
— Ali (@ali_charts) November 27, 2023
Cardano (ADA) Latest Price Action
Recently, ADA has experienced a downturn, with its value dropping nearly 5% in the past week. This downward trend has continued over the past 24 hours, with a decline of 2.5%, bringing the trading price to around $0.378. This price is significant as it aligns with the strong support level identified by analyst Ali.
As highlighted above, a decline below this support level could potentially lead to a further decline to around $0.34, according to Ali. Conversely, if the ADA stabilizes or recovers from this level, it could pave the way for a climb to new annual highs.
Although ADA has been going through a bearish phase lately, a broader perspective reveals a more positive outlook. Over the past month, ADA has seen a 29% increase, and even considering the last two weeks, it maintains a 3.2% increase.
Meanwhile, the asset’s daily trading volume has been on a downward trend in recent weeks since then. In the past 24 hours, ADA’s daily trading volume reached $255 million, down significantly from $600 million in the middle of this month.
Featured image from Unsplash, chart from TradingView
