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Cardano (ADA) is currently trading just below the critical resistance level of $0.33 after a week of intense fear and uncertainty in the market. However, on-chain data from IntoTheBlock suggests that some investors are seeing this as a potential buying opportunity, and are anticipating a market recovery in the near future.
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Despite the broader slowdown, some metrics are pointing to growing optimism, with a portion of the market appearing to be accumulating ADA at these levels. This suggests that investors may be expecting a reversal soon.
As the market continues to shift, these metrics could provide key insights for those wondering whether Cardano is worth buying at this point or whether a deeper correction is likely. With ADA approaching a critical juncture, investors are closely watching price action and data to determine if this could be a turning point for the asset.
Are Cardano Investors Getting Ready to Buy?
Data from IntoTheBlock It reveals that some investors are looking at Cardano (ADA) as a promising buying opportunity ahead of a potential market recovery. One important indicator that supports this is the Exchange On-chain Market Depth, which tracks the order books of the 20 largest exchanges. This data shows that participants have placed buy orders for 220 million ADA tokens, worth over $70 million at the current market price. In contrast, bearish traders have placed sell orders for less than 170 million ADA tokens, worth around $52 million.
This disparity between buying and selling volumes suggests that Cardano’s price may be poised for an upward move. When buy orders significantly outweigh sell orders, it often indicates that investor sentiment is becoming more positive, which can contribute to a price increase. As long as this trend continues, with buying pressure dominating, Cardano could see a rally in the near term.
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However, despite the bullish outlook from some investors, the broader market remains fraught with uncertainty, with Cardano still facing resistance at the $0.33 level. Overall market sentiment and external factors will play a crucial role in determining whether ADA can break through this resistance and enter a more sustainable uptrend. However, current data points to a favorable environment for a potential recovery if the positive sentiment persists.
ADA Price Action
ADA is currently trading at $0.32, facing hesitation as it attempts to break the resistance at $0.33, which previously served as support in early August.
The asset remains under pressure, trading below the 200-day 4-hour moving average (MA) at $0.3446. This is a crucial indicator of short-term strength, and its current position is pointing to weakness. For bulls to regain momentum, ADA must break the $0.33 resistance level and reclaim the 200-day 4-hour moving average as support. Achieving this would strengthen the bullish case, potentially leading to a potential upside move.
However, if ADA fails to break above these resistance levels, the outlook could turn bearish. The next important support is at $0.30, and a break below this level would signal further downside potential.
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Traders are keeping a close eye as price action around the $0.33 resistance level and the 200 MA will determine whether ADA is able to recover or face a deeper correction. The uncertainty in the market makes these levels pivotal for ADA’s near-term direction.
Featured image by Dall-E, chart by TradingView