Cardano’s (ADA) price is just under a crucial resistance level of $0.33 following a market week marred by fear and anxiety. But on-chain information from IntoTheBlock shows that many investors are looking at this time as a buying opportunity in anticipation of a future market recovery.
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Despite the broader decline, certain metrics show growing optimism as a part of the market seems to be accumulating ADA. Investors may be expecting a turnaround soon.
In a market that is constantly shifting, these metrics may provide valuable insights to those who are wondering if Cardano at this stage is a worthwhile investment or whether reversals will be more significant. Investors are watching closely the price movement and data of ADA as it hovers at a crucial juncture.
Cardano Investors Getting Ready To Buy?
Data from IntoTheBlock reveals some investors see Cardano as a promising buy opportunity before a possible market recovery. Exchange On Chain Market Depth tracks orders on 20 of the largest exchanges. This is an important indicator. The data indicates that 220,000,000 ADA tokens have been purchased, which is worth over $70 million based on the current price. Bearish traders, on the other hand, have placed sell orders of less than 170 millions ADA tokens worth approximately $52million.
Cardano’s price could be on the verge of a rise if this disparity between volume is reflected in its buying and selling. If buy orders are significantly higher than sell orders, this can indicate a positive shift in investor sentiment, and subsequently, a rise in the price. Cardano may see an increase in price as long as the trend of buying orders dominates.
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Cardano is still facing resistance around $0.33 despite some bullish investors’ outlooks. The market’s overall sentiment, as well as external factors, will be crucial in determining if ADA is able to break this resistance level and move into a sustained upward trend. Even so, current data points to an environment favorable for potential recovery.
ADA Price Action
ADA’s current price is $0.32. The company faces indecision in its attempt to overcome the $0.33 resistance that previously acted as a support at early August.
This asset is still under pressure and trading at $0.3446, below the moving average of 200 hours (4-hours). The current value of this indicator is weak, and it signals short-term weakness. If bulls want to regain the momentum they need, ADA will have to overcome the $0.33 resistance level and reclaim its 4-hour 200 MA. If this is achieved, it would strengthen bullish arguments and potentially lead to a rally.
If ADA does not clear these levels of resistance, then the outlook may turn negative. The outlook could turn bearish if ADA fails to clear these resistance levels. next Significant support is at $0.30. A break below that level could signal further potential downside.
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Traders closely monitor the price action near the $0.33 resistance level and 200 MA. This will help determine if ADA has a chance to recover or if a further correction is in store. Due to the market’s insecurity, these levels will determine ADA’s direction for the short-term.
Featured picture from Dall E, chart by TradingView
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Source: www.newsbtc.com