Cardano Buy Signal Fires as Price Drops Below $0.20
Cardano has been experiencing a retracement phase after reaching its new high of $0.258 on August 22nd. The altcoin's price dropped to $0.189 on Sunday, August 30th, but analysts believe this could be a buying opportunity. According to popular crypto analyst Ali Martinez, the TD Sequential indicator fired a buy signal for Cardano on the daily timeframe.
The TD Sequential has previously signaled three sizable price rallies when it gave a buy signal on the daily timeframe. The swing structure on the daily chart is also bullish, with ADA setting new swing highs over the past two months while maintaining higher lows. Additionally, the OBV and CMF indicators show strong buying pressure.
The $0.20 support zone has been retested, which had previously served as resistance in July and August. The 4-hour chart's swing structure is also bullish, with the $0.20 level confluence with the 78.6% Fibonacci retracement at $0.19. Analysts expect a bullish price reaction, targeting $0.238 and $0.258.