Buy Signal for Cardano (ADA)? Chart Reveals Everything
Zameer Attar27 Oct 20242 min read
After a price decline of nearly 20%, sentiment around Cardano (ADA) has begun shifting from a downtrend to an uptrend due to its bullish price action pattern. Since July 2024, whenever the ADA price falls to the current level, it tends to experience buying pressure resulting in an upside rally.
ADA’s Perfect Buying Level
Based on ADA’s daily chart, this is the fourth time in the past four months that the price has reached this support level, which we can consider a buying level.
Currently, ADA is trading near $0.333 and has registered a 2.25% price drop in the past 24 hours. During the same period, its trading volume jumped by 26%, indicating strong participation from traders and investors, likely due to the current level which acts as a buying level.
ADA Technical Analysis and Upcoming Levels
According to the expert technical analysis, ADA appears bullish and is currently at a strong support level of $0.31. This level has provided significant support for ADA since July 2024. However, it has also been observed that when the asset reaches this level, it often witnesses a price surge of over 20%.
Based on the recent price action, there is a strong possibility that ADA could experience a notable price surge of over 20% to reach the $0.40 level in the coming days.
Despite this bullish outlook, the ADA daily chart has also formed a descending triangle pattern. If ADA soars by 20% this time, then this pattern will be breached, and we may witness a notable upside rally to the $0.45 level.
Major Liquidation Levels
As of now, the major liquidation levels are at $0.323 on the lower side and $0.337 on the upper side, with traders over-leveraged at these levels, according to the on-chain analytics firm Coinglass.
If the sentiment remains bullish and the price rises to $0.337, nearly $1.53 million worth of short positions will be liquidated. Conversely, if the sentiment shifts and the price drops to the $0.323 level, approximately $1.99 million worth of long positions will be liquidated.
Combining the liquidation data with the technical analysis, it appears that bulls are currently dominating the asset, further suggesting a potential upside rally and a buying opportunity.
