If a sell signal seen on Cardano’s chart verifies, the eighth-largest cryptocurrency by market capitalization might suffer a loss of almost 12%.
The technical analysis tool TD sequential has produced a sell signal on the ADA daily chart, according to cryptocurrency expert Ali. This is a correction that is expected to bring ADA back to the $0.30 support level.
https://x.com/ali_charts/status/1721832817129115914?s=20
Cardano has had a robust comeback in the last few weeks as investors drove the price over its October 19 low of $0.24. Cardano has recorded 16 of the past 19 days in the green since that time. On November 6, the bull-driven surge peaked at $0.375.
The robust increase caused the RSI to enter the overbought area, suggesting that a short-term consolidation or correction may be forthcoming.
Given this, Cardano is seeing some profit-taking, with a drop of 2.11% to $0.345 during the last day.
ADA may drop below $0.30 if the losses persist and the price drops below $0.32. The bulls must hold this crucial level in order to keep the rally going.
Nonetheless, there is a greater chance of a spike to $0.38 if the price stays above $0.32.
IntoTheBlock reports that ADA received a resounding vote of confidence last month. Large holders amassed 1.89 billion ADA in value last month, which, at current exchange rates, is equivalent to almost $600 million. As said, the bulk of the accumulation happened between the range of $0.249 and $0.271.
As per the most recent data from CoinShares, investments in digital asset investment products experienced inflows of $261 million during the previous week, marking the sixth week in a row of inflows. This inflow run is the greatest since the conclusion of the bull market in December 2021 and currently equals the one from July 2023. Cardano reported just $0.5 million in inflows.
