Cardano (ADA) Rebound: Analyst Sees Bullish Signs

Cardano (ADA) might be poised for a rebound after a recent price drop, according to crypto analyst Trend Rinder. In a post on his social media account, Rinder pointed to a pullback following ADA’s recent surge, suggesting an opportunity for a healthy bounce back.

✍️So $ADA had a big pump, and now it came back down to liquidate longs.

We could see a healthier bounce from here as it could print a higher low.

I would like to see a bounce signal like the one we got from our indicators a couple weeks ago.

We traded the first bounce, no… pic.twitter.com/YmEc2AvbPy

— Trend Rider (@TrendRidersTR) August 28, 2024

Rinder believes the current price movement resembles a past scenario where ADA found support at lower levels before rallying. This suggests the market could soon signal a bullish reversal.

An analysis of ADA/USDT on Binance using Trend Rinder’s indicators shows a retracement after encountering short-term resistance. These indicators identify key support and resistance zones, suggesting ADA is trying to establish a base for a potential upward move.

Source: Trend Rinder

The current pattern aligns with a previous bounce signal that resulted in a notable price increase, indicating that the area around the long liquidation level could support a potential rebound.

Momentum indicators also suggest growing market interest. The bottom oscillator panel is shifting from bearish to bullish momentum, marked by a transition from red to green. This suggests buying pressure could increase as the market aims to regain upward momentum.

On the Bybit exchange, the ADA/USDT trading pair shows a slight upward trend in recent sessions over a 30-minute timeframe. Prices ranged between $0.3632 and $0.3650, with the Arnaud Legoux Moving Average (ALMA) at a 9-period setting positioned below the price candles, indicating a bullish trend.

Trading volume remained moderate, with a notable spike at the beginning, suggesting increased buying activity.

Source: TradingView

The Accumulation/Distribution indicator also reflects bullish sentiment, with a steady rise to approximately 14.396 million, pointing to ongoing accumulation by buyers.

As of the time of writing, Cardano (ADA) was priced at $0.3641, with a trading volume of $353,638,875, recording an increase of 2.55% over the last day.

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