Cardano, a cryptocurrency, is currently positioned at a crucial demand zone between $0.37 and $0.38. Over 160,000 wallets have acquired nearly five billion ADA at this level. If ADA manages to stay above this range, it has the potential to reach new highs by the end of the year. However, losing this support could lead to a dip down to $0.34.
According to an analyst named Ali, this price level is critical for ADA’s upward movement. The analyst highlights that the $0.37-$0.38 range is a key demand zone where a significant number of wallets have acquired a substantial amount of ADA. Remaining above this zone could pave the way for ADA to reach new yearly highs. However, losing this support level could trigger a brief correction to $0.34.
The analyst also mentions the Tom Demark sequential indicator, which presents a sell signal on the weekly ADA chart. This indicator suggests a potential turning point in ADA’s price. Losing the $0.37 support could lead to further pullback, with a potential correction towards $0.34 or $0.33. To advance towards $0.46, ADA must close above $0.40.
Additionally, the Tom Demark indicator indicates a short-term bullish signal on the four-hour chart. The 100-EMA acts as a rebound zone for ADA, while the $0.396 level acts as strong resistance. The TD Sequential also presents a buy signal within this time frame, anticipating another rebound. Confirmation of the ADA trend direction requires a four-hour candlestick close above the $0.396 resistance or below the 100-EMA.
Furthermore, Cardano remains an essential digital asset for institutional players in the cryptocurrency space. Its importance is expected to increase with the launch of perpetual futures for ADA on Coinbase, the largest exchange in America. Perpetual futures allow traders to speculate on the future price of assets for an unspecified time period. These futures will be available for trading starting November 30th, opening up ADA to a broader range of sophisticated investors.
In summary, Cardano’s current position at the key demand zone is crucial for its future price movement. Staying above this zone could lead to new highs, while losing this support could result in a correction. The Tom Demark sequential indicator and the 100-EMA on the four-hour chart provide additional insights into ADA’s potential trends. Additionally, the launch of perpetual futures on Coinbase further solidifies Cardano’s importance in the cryptocurrency market.