Analyst Forecasts Higher Highs for ADA Should This Support Hold.
The asset has found support from a demand wall between the $0.365 and $0.376 price ranges.
Cardano (ADA) could have a chance at rallying to higher highs if the demand wall established at the $0.365 to $0.376 price range holds, according to seasoned crypto analyst Ali. The asset failed to recapture its pre-FTX highs during the previous market-wide rally, but this might be its opportunity to have a go at the price territory.
ADA’s support level at the $0.365 to $0.376 range is a result of the cluster of demand observed at the price point, Ali noted in a recent tweet, citing data from IntoTheBlock, a crypto market analytics platform.
#Cardano has formed a crucial support area between $0.365 and $0.376, where nearly 92,000 addresses purchased around 4.40 billion $ADA.
As long as this demand wall holds, #ADA will have a good chance of reaching higher highs. pic.twitter.com/aYnvRot4PO
— Ali (@ali_charts) January 29, 2023
IntoTheBlock data reveals that about 91.94K addresses purchased 4.39B ADA within the $0.365 and $0.376 range, at an average price of $0.370. This cluster of demand formed a wall that is serving as crucial support for the asset. Should this wall hold, Ali believes the asset could surge to higher highs.
In order to sustain the wall, investors in the territory need to hold onto their bags regardless of a price dip. However, a trend of distribution observed among ADA whales from January 21 might be a discouraging factor.
Ali further highlighted this growing trend since Cardano recaptured the $0.38 price point two weeks back. Citing data from Santiment, Ali pointed out that an estimated 31 addresses holding between 1 million and 100 million ADA have sold or redistributed their tokens.
*1,000,000 to 100,000,000
wen edit button? 😅
— Ali (@ali_charts) January 30, 2023
ADA Price Movement and DJED Update
Meanwhile, the battle to remain above the $0.38 price level has been fierce, with the bears persistently battering ADA below it since January 21. Notwithstanding, ADA has staged a comeback after each dip. The asset surged to a 2-month high of $0.3991 over the weekend before facing opposition. Notwithstanding the resistance ADA closed Sunday with a massive 4% gain.
Currently changing hands at $0.3894, ADA is looking to reclaim the $0.39 level which should provide enough support to the bulls to take the asset to higher highs. Reclaiming $0.39 would serve as ADA’s launchpad to the first crucial resistance at $0.406. An extended rally could take ADA to the pre-FTX high of $0.435.
Developments within the Cardano community could provide ample support for this rally. Last Friday, World Mobile announced a partnership with IOG that would see it integrate its blockchain as a Cardano sidechain. Updates on DJED are likely to provide further support. COTI revealed last Tuesday that it plans to launch DJED this week.