Cardano (ADA) is currently near $0.37, a key support area as altcoins are declining. According to a crypto analyst, the 4-hour chart shows a potential buy signal for ADA. Furthermore, a rebound is suggested by bullish on-chain metrics.
As the crypto market is in a pullback, ADA’s price dropped below $0.38, which is a support level seen when prices rose last week. Will Cardano make a rebound?
The analyst shared the forecast on X, pointing out the 100-EMA on the 4-hour chart as a rebound zone for ADA, with $0.396 as a stiff resistance. Additionally, the TD Sequential presents a buy signal around the 100-EMA. However, traders must pay attention to a 4-hour candlestick close above $0.396 or below the 100-EMA to confirm the direction of ADA’s trend.
Despite the slight decrease in ADA price in the past day and seven days (by 1.4% and 2% respectively), the outlook is still positive. Supporting the uptrend is a green NPL (Net Realized Profit/Loss) and MVRV (Market Value to Realized Value) ratio. Moreover, Cardano’s progress in decentralisation is also helping its bullish outlook, with the launch of an AI chatbot and the partnership with the Institute of Blockchain.
