The cryptocurrency markets have experienced significant volatility, with Cardano’s digital asset ADA caught in the crosswinds. After a meteoric rise, ADA has retraced around 30% from its recent highs. While such a substantial drop would typically spark fears of a prolonged downtrend, several prominent analysts remain steadfastly bullish on ADA’s prospects.
One such ADA bull is the analyst known as Av_Sebastian. The market expert has identified several technical factors suggesting the current downturn could be nearing an inflection point. Specifically, Sebastian notes that Cardano ADA’s relative strength index (RSI) has touched a support line, even as the coin’s price trades within a broader support range. This convergence of indicators has historically signaled potential bottoms for ADA.
However, Sebastian cautions that further short-term downside cannot be ruled out entirely. The analyst suggests a dip to the $0.55 level could materialize before ADA establishes a firm bottom. Yet, should that price floor be reached, the analyst has made ac lear intention to aggressively accumulate the discounted tokens. Moreover, the analyst maintains any bounce from current levels would constitute ADA printing a higher low, setting the stage for what Sebastian describes as an epic bullish continuation.
Support Levels and Macro Backdrop for Cardano
Corroborating this optimistic viewpoint is another prominent crypto commentator who goes by the moniker Trend Rider. According to his analysis, Cardano appears to be transitioning from bearish to bullish market dynamics. Trend Rider’s analysis focuses on ADA’s 2-week chart, where key moving averages are realigning to mirror the setup preceding ADA’s most recent major uptrend. As the indicators flip from red to green, Trend Rider sees this as confirmation of a broader bullish reversal brewing.
But could this optimistic forecast be derailed if the current downtrend deepens? Not according to Trend Rider’s prior multi-tweet analysis evaluating ADA’s price action. While conceding the uptrend’s momentum has waned after breaching a parabolic indicator, the analyst believes ADA has sturdy price support between $0.45-$0.52 to catch any impending sell-off. Crucially, with Bitcoin still trading above a key long-term support level that has forced most altcoins below it, Trend Rider argues the macro backdrop could rapidly turn favorable for embattled cryptos like ADA if Bitcoin’s uptrend remains intact.
Trend Rider further declared that should Cardano ADA’s price decline accelerate towards this buy zone over the next week, it would present an extremely attractive opportunity to initiate leveraged long positions on lower timeframes. The analyst doubled down on this conviction by revealing they still hold a substantial core position in ADA, steadfastly maintaining the coin’s broader bullish trend remains valid.
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