Cardano's (ADA) Price Slippage Stops at $0.86, Indicators Suggest Recovery Onset
Cardano (ADA), the eighth-largest cryptocurrency by market capitalisation, is making strides towards the significant $1.00 psychological barrier. At the time of writing, ADA is trading at $0.94254, following a 12.83% surge.
The TD Sequential indicator, a popular technical analysis tool, suggests a buying opportunity for ADA. This is supported by the MACD histogram, which is contracting, and the signal lines preparing for a potential bullish cross.
In a move that could further boost ADA's momentum, Santander's Openbank has announced that it will offer Cardano to 2 million customers in Germany. The bank, which transformed its digital banking arm on September 16, 20XX, also plans to extend this service to customers in Spain soon.
The technical outlook for ADA is positive, with higher low formations around the $0.85 region strengthening the bullish argument. The cryptocurrency has recently experienced a sharp pullback, finding support near the $0.86 region. With ADA now holding above short-term demand zones and maintaining its structure, it appears positioned for its next move.
The RSI indicator is stabilising around 47 for ADA, just shy of neutral, indicating that the cryptocurrency may be oversold. If the current technical framework holds, the next major resistance levels for ADA correspond with the 0.786 Fibonacci level around $1.78 and the previous cycle peak near $3.00.
The TD Sequential indicator has also flashed a potential reversal sign for ADA, further reinforcing the buying opportunity. The current price action represents the handle's breakout attempt in a large cup and handle formation on the weekly timeframe, which is a bullish pattern in technical analysis.
Open interest in the derivatives market for ADA has reached its highest point since July, indicating increased activity and potential for further price movements. However, the immediate challenge for ADA is reclaiming the $0.88 to $0.90 zone, which serves as a significant resistance level.
In conclusion, while ADA is facing some resistance at the current price level, the overall technical indicators and the recent developments suggest a promising outlook for the cryptocurrency. Investors and traders should closely monitor the price action and technical indicators to capitalise on potential buying opportunities.
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