ADA flashes buy signal after the recent 50% drop as the different technical and on-chain metrics are showing at the correction. Cardano returned to the price levels which were not seen since the start of the summer as we reported in the latest Cardano ADA news.
Despite the massive losses incurred, the buying signals are popping up and the spike in buying pressure could lead the price to $0.093. after the month-long corrective period, Cardano seems poised to rebound and resume the uptrend that was seen before the Shelley upgrade. Cardano took a 50% drop after the massive yearly high of $0.155 at the end of August. The massive losses incurred over the past month saw the altcoins decrease to the 200-day moving average which is serving as a support level. Although most investors are reluctant to jump back into the market, metrics show that the so-called “Etheruem killer” is poised to rebound again.
ADA flashes buy signal as the TD sequential indicator presents a buying signal on the ADA chart. The bullish formation developed as a red nine candlestick which leads to one to four candlesticks. If the buying pressure behind Cardano is strong, it could mark the start of a new upward countdown. The bullish thesis holds if you take a look at the Cardano network growth. Market participants seem to be purchasing substantial amounts of this token because of the spike in new daily addresses.
More than 6000 new addresses are joining the network daily representing a 5% jump in the past four days. The recent higher high level on the on-chain metric can be considered as an optimistic signal as it shows a huge increase in user adoption over time. network growth is usually regarded as one of the most accurate price indicators. Usually, the network expands for a long period of time which means that the rising trend will come soon.
Cardano could find an important resistance level between $0.082 and $0.085 as the IntoTheBlock’s In/Out of the money around price model shows that about 11,000 addresses have purchased more than 1 billion ADA tokens at this price level. This supply barrier could have the ability to absorb the buying pressure behind Cardano.
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