Cardano (ADA) is down 8% daily, but this key indicator is giving a buy signal

Is ADA’s latest correction actually a good buying opportunity?

Cardano’s ADA was among the hardest hit, with its share price falling 8% in the past 24 hours. However, one crucial metric suggests a recovery is underway.

Are the bulls coming back?

The past few months have been quite painful for Cardano’s investors, as the asset’s valuation is currently trading below $0.40, marking a 60% decline from its local peak in mid-September. Its market cap fell below $15 billion, making it harder for ADA to return to crypto’s top 10 club.

Despite the bearish conditions, some analysts believe there is light at the end of the tunnel. X user Ali Martinez observed ADA’s recent price performance and claimed that the TD Sequential has provided a buy signal.

Marcus Cornivus also participated, sketches the range of $0.38-$0.40 as the ‘largest demand zone’. The analyst believes that if this bottom holds, “the chart will become a launching pad and the next wave will open up quickly.” He argued that the mid-range of $0.55-$0.60 is the first wall, and if momentum wakes up, there could be a breakout towards $0.82-$0.85.

“This is the moment where ADA tells the story. Hold the base and the bounce fire. Lose it and the structure shifts. Right now the odds are leaning towards strength, and the card is still buzzing with energy,” the analyst concluded.

A few days ago, X user Smith said he remains unfazed by ADA’s dump and took the opportunity to increase his exposure to the token. The analyst believes the coin has a 10x potential, and foresees a boom above $3.

Observe other statistics

ADA’s Relative Strength Index (RSI) supports the thesis of short-term recovery. The technical analysis tool ranges from 0 to 100 and measures the speed and magnitude of recent price changes to help traders identify a possible pivot point. Currently the price is below 30, which means oversold territory and a potential buying opportunity. On the other hand, anything above 70 is interpreted as a bearish zone.

You might also like:

The net change in recent months is also a sign of hope for the bulls. According to CoinGlass data, outflows have significantly exceeded inflows over that period, indicating that investors have shifted from centralized platforms to self-management methods. This in turn reduces the immediate selling pressure.