Cardano has retraced more than 26.5% over the past two weeks. Now, a technical indicator suggests a bullish impulse is emerging. ADA must stay above $0.92 to surge to $1.
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Cardano appears to be trading at an important support level that attracts many buyers. As long as it continues to hold, ADA has a chance to rebound to $1.
Cardano hints at rebound
Cardano is holding above a significant demand area, while buy signals are starting to emerge.
ADA has retraced more than 26.5% over the past two weeks. Profit-taking surged after Cardano hit a high of $1.25 on April 4, dropping the price to $0.92. Layer 1 platforms looking to compete with the likes of Ethereum and Solana are now consolidating around this price point, suggesting a bullish impulse may be emerging.
The Tom DeMark (TD) Sequential Indicator is showing a buy signal on the daily chart of ADA. The bullish pattern developed into a red nine candlestick, which indicates a rise of one to four daily candlesticks. Upside pressure from current price levels could help validate the bullish outlook and push Cardano towards $1.
Trading history shows that Cardano has established a solid foothold around $0.92. Over 44,790 addresses previously purchased nearly 6.8 billion ADA around this price level, based on IntoTheBlock’s In and Out of Money Around Price (IOMAP) model. A significant demand zone prevents price declines, helping to validate the bullish thesis.
Nonetheless, the bullish impulse around current price levels could meet strong resistance at $1, with 241,000 addresses holding nearly 4 billion ADA. A daily candlestick close above this barrier could lead to higher highs.
Notably, Cardano must avoid closing the daily price below $0.92 as this could lead investors to exit long positions. If this support is breached, ADA could experience a sell-off, taking it to $0.80 or lower.
Disclosure: At the time of writing, the author of this article owns ETH and BTC.
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