ADA Price Under Pressure: Sharp Drop, Technical Signals Point to Buying Opportunity

In early December, the digital currency market experienced a sharp correction that affected most major digital currencies. Cardano (ADA) was one of the most severely affected digital currencies, with its price falling by approximately 8% in the past 24 hours.

Despite the sharp decline, one important technical indicator stands out, sending a positive signal that could pave the way for an imminent rebound.

Will the upward momentum resume?

Cardano has been going through a difficult few months as the price of the ADA digital currency is currently below $0.40, approximately 60% below the near peak recorded in mid-September.

The market capitalization also fell to less than $15 billion, making it more difficult for the currency to maintain its position among the top ten digital currencies.

But despite the negative data, some analysts see signs of optimism.

Analyst Ali Martinez noted on the X platform that the TD sequential indicator, a tool known for its ability to capture potential reversal points, issued a buy signal.

In turn, analyst Marcus Cornivus sees the range between $0.38 and $0.40 as the area of ​​greatest demand.

He believes that if this range holds, it could be the start of a rapid upward wave.

Levels between $0.55 and $0.60 are identified as the first significant resistance level, while strong momentum could push it towards levels between $0.82 and $0.85.

Cornius said:

This is the moment that determines the direction of ADA.

If the current base is maintained, we may see a strong rebound, but a break above it would mean a change in the overall structure.

At the moment, the odds of strength seem higher and the charts are still full of activity.

Some investors appear to share the same optimism. User “Smith” recently revealed that he took advantage of the recent decline to consolidate his position in ADA, emphasizing that he believes ADA can achieve a tenfold increase, bringing the price back above $3.

Technical indicators support rebound ideas:

The Relative Strength Index (RSI) indicates a possible short-term recovery, with the index currently trading below 30, an oversold zone that is often interpreted as a potential buying opportunity.

Conversely, a reading above 70 signals overbought territory.

CoinGlass data also shows that net ADA flows to trading platforms have been negative over the past few months, as withdrawals significantly exceeded deposits.

This behavior reflects a shift by investors into self-storage, reducing immediate selling pressure.

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