The key to demand and mixed signals is revealed

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The key to demand and mixed signals is revealed

IMPORTANT POINTS:

  • Cardano Demand Zone: Ali Martinez identified an important demand zone for ADA, with 4.88 billion ADA purchased at 0.37-0.38.
  • Bullish potential and risk of correction: ADA can reach a new annual high if it remains above the current support, with a risk of correction to 0.34 if broken.
  • TD Sequential Indicator Signals: The Indicator shows a sell signal on the weekly chart and a short-term buy signal on the four-hour chart for ADA.

Ali Martinez, a famous cryptocurrency analyst, has identified a major demand zone for Cardano (ADA), which competes with Ethereum (ETH). Martinez, who shared his insights with his 33,800 followers on a popular social media platform, highlighted that 166,470 wallets have obtained approximately 4.88 billion ADA, whose value exceeds 1.85 billion, while the asset is traded between 0.37 and 0.38.

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The Key To Demand And Mixed Signals Is Revealed

Growth Potential and Correction Alert

According to Martinez’s analysis, the current position of the ADA, with strong support on the bottom and little resistance ahead, suggests the potential for a new annual high. However, he warned about the possibility of a short-term correction, suggesting that a drop below the support level could lead ADA to a correction towards $0.34.

TD Sequential Indicator: Mixed Signals for ADA

Trade Signal on Weekly Chart

Martinez noted that the Tom DeMark (TD) Sequential indicator, which is used in trading to anticipate trend changes, issued a sell signal on the ADA weekly chart. This indicator analyzes the closing prices of the last 13 bars or candles, looking for patterns that may indicate a reversal of the current trend.

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The analyst explains that if the ADA loses its support level of 0.37, it may face a correction to 0.34 or 0.33. To start a strong move towards 0.46, it is important for ADA to close above 0.40.

The Key To Demand And Mixed Signals Is Revealed

Short Term Bullish Signal

However, Martinez also introduced a short-term bullish signal. Note that the 100 EMA on the four-hour chart serves as a bounce zone for the ADA, with the 0.396 level acting as sufficient resistance.

The TD Sequential is now showing a buy signal in this time frame, anticipating another possible bounce. Martinez emphasized the importance of monitoring the four-hour candle close to the top of the 0.396 resistance or below the 100 EMA to confirm the ADA trend.

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