ADA How Far Will the Crypto Market Crash for Discounted Accumulation and Gains

Bitcoin’s current price is below $62k, entering a precarious territory. However, Cardano (ADA) has experienced a 2% surge in the past 24 hours. While most altcoins are attempting to recover, Bitcoin is managing to stabilize over the past day. The cryptocurrency market, on the whole, is predominantly in the red today, with most coins making efforts to recover. Despite ADA’s price dip, sentiment surrounding Cardano remains positive. ADA’s performance is also influenced by the broader crypto sector, particularly Bitcoin’s movements.

An analyst from Crypto Capital Venture examined the daily chart for ADA and noticed a swing low from April to the current swing low. Despite a downward move in ADA’s price, there was a slight higher low on the RSI. While bullish divergence doesn’t guarantee a reversal, it is a signal worth paying attention to, even if it requires patience.

The analyst drew a parallel to a previous period when ADA was attempting to reach a bottom, showing a higher low on the RSI during a consolidation phase despite a lower low in price. This historical pattern suggests that although there are signs of a potential reversal, it may still be weeks away. Therefore, it is important to be prepared for possible further downside and keep an eye on momentum oscillators.

In terms of Elliott Wave Technical Analysis, ADA is still below the trend line and there is no confirmation of a low being in place. Despite the possibility of ADA breaking out, it hasn’t been able to do so, likely due to low weekend trading volumes.

However, ADA has been holding a higher low, even as Bitcoin reaches new lows. While this isn’t entirely convincing, it is noteworthy as ADA and some other coins are holding support well. Currently, ADA has not broken any support or resistance levels, which casts doubts on a potential bullish reversal.

The key support level to watch is $0.36. ADA must show a five-wave pattern to the upside in order to confirm a reversal. If it experiences another low, the next support levels to watch are $0.352, $0.322, and $0.29. An early reversal signal would require a convincing break above the trend line.

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– Crypto news
– Cryptocurrency
– Price Analysis