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The Cardano (ADA) chart is facing a crucial pivot and might be set for a rebound, according to its current on-chain setup.
Cardano has faced definitive pushback in its attempt to flip and form definitive support at the $0.4 price mark. For the past month, ADA only managed to temporarily breach the $0.4 mark on November 16, a move that followed market sentiment that trailed BlackRock’s application for a spot Ethereum ETF.
At press time, ADA’s price is down 0.36% to $0.3766 with trading volume pegged at $256,998,714. While the current ADA price outlook bolsters the bearish narrative, market analyst Ali Martinez is optimistic that a momentary rebound might be underway.
Bullish Cardano Signals
Martinez presented a 4H ADA chart showing a range-bound motion with prices moving between a low of $0.3368 and $0.4106. The analyst observed that the $0.396 price level has acted as a stiff resistance zone that has prevented ADA from flipping the $0.4 level.
#Cardano | Look how the 100-EMA on the 4-hour chart has acted as a rebound zone for $ADA while the $0.396 level acts as a stiff resistance.
The TD Sequential now presents a buy signal within this time frame around the 100-EMA, anticipating another rebound. However, you must pay… pic.twitter.com/bi4Lzg4rUr
— Ali (@ali_charts) November 27, 2023
There are important technical indicators that suggest ADA price is ready for a possible shoot-out. The 100-EMA on the chart is acting as a rebound zone with almost equal pressure from both ADA bulls and bears. The bull-bear balance of power also shows how a small tilt can change the narrative in the trend that ADA prices will trail in the short term.
Despite the outlook, the TD Sequential, an indicator that identifies trend exhaustion and potential uptrend, currently presents a buy signal on Cardano around the 100-EMA.
With ADA clinging tightly to the $0.396 level, Martinez advised traders to keep a close eye on a candlestick close above or below the 100-EMA mark to confirm the direction of the trend change.
Cardano Fundamentals to Prop Growth
Many have argued that Cardano is undervalued considering its deep value propositions and developmental prowess. Input Output Global (IOG), the protocol’s parent company has maintained its consistency in rolling out new products that can serve its users.
One of the latest products launched is the generative AI protocol, Girolamo, live in Beta mode. Other notable milestones whose impact can drive price growth in the near future include its superior staking mechanism and proposed stablecoin ventures.