Amid the crypto bloodbath, Cardano (ADA) bulls face a massive blow. With the ADA price down to 100-day EMA, will buyers manage to absorb the incoming supply waves?
As the total crypto market cap, excluding Bitcoin BTC $92 423 24h volatility: 2.5% Market cap: $1.84 T Vol. 24h: $46.96 B and Ethereum ETH $3 251 24h volatility: 1.6% Market cap: $391.76 B Vol. 24h: $23.91 B , drops under $1 trillion, the altcoins are under immense pressure. One of the top altcoins, Cardano ADA $0.43 24h volatility: 0.1% Market cap: $15.63 B Vol. 24h: $1.10 B , has witnessed a massive crash of 10.28% in the last 24 hours.
The sudden bearish shift in Cardano breaks under the $1 psychological mark and is now hinting at an extended correction rally. However, the minor shift in crypto winds is signaling a potential recovery run to cross above $1.
Analyst Reveals Cardano Buying Opportunity with TD Sequential
Amid the increasing sell-off, the lower price rejection plays a critical role. A recent X post from Ali Martinez, an independent crypto analyst reveals a buy signal in Cardano.
The TD Sequential presents a buy signal on the #Cardano $ADA daily chart, anticipating a price rebound! pic.twitter.com/1hajRD9DAC
— Ali (@ali_charts) January 27, 2025
Using the TD sequential technical indicator, the massive bearish engulfing candle with the lower price rejection signals a potential rebound. Highlighting the possibility of a bearish exhaustion, it could lead to a quick comeback in Cardano prices.
Cardano Price Analysis Paints $0.844 Support as Last Bullish Hope
In the daily chart, the ADA price trend reveals two consecutive bearish candles. The lower price rejection in the intraday candle highlights a retest of the 100 EMA line at $0.885.
The correction phase breaks under the 50 EMA line and reveals a bullish failure to reclaim the $1 psychological mark. With the recent correction, the downfall in the RSI line extends towards the oversold zone.
Furthermore, the 20 and 50 EMA lines are on the verge of giving a negative crossover. Thus, the momentum indicator and the dynamic average lines reveal a surge in selling pressure.
Currently, Cardano trades at a market price of $0.885 and tests the previous support and puts pressure over the existing support level of $0.844. While the RSI line shows no bullish divergence, the low price rejection hints at a potential comeback.
However, the broader market volatility could result in a bearish continuation. Using the trend-based Fibonacci levels, a potential comeback will likely detest the $1.057 level.
However, a closing price below the 100 EMA or the $0.844 support level will likely retest the 200 EMA line. This dynamic support level at $0.711 will be the next potential price target.
Brownie Points: Minor Recovery in Cardano Network
As the Cardano price volatility reveals high-speed moves, the network witnesses a minor recovery. The transactions over the Cardano network have increased from 10.09K to 14.09K over the weekend.
However, the unique active wallets over the past week have witnessed a significant fall. From the 7-day high of 3.84K, the unique active wallets are down to 2.82K.
Conclusion
As Cardano hovers near critical support at $0.844, the next few days will be pivotal in determining its trajectory. While the TD Sequential indicator hints at a potential rebound and minor network recovery offers a glimmer of hope, broader market volatility and bearish pressure could still push prices toward the $0.711 support level. A decisive move above $1 will be key to regaining bullish momentum and avoiding further downside.
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