ADA is facing a crucial moment – this is the level to watch out for
Corrections are an important part of any financial market, but they are often more intense in the crypto space. While key assets like Bitcoin, ETH, and SOL have slumped last week, it’s been a regular occurrence for ADA since early September.
Most altcoins did well in October, but ADA was barely able to rebound above $ 2.30. Right now the price may be nearing the final inflection point. With the exception of a turnaround, whatever happens could spell trouble for the sixth largest digital asset in the market.
ADA and the story of two protests
Source: trade view
To understand the importance of the current consolidation range, we need to analyze the two previous rallies in ADA. The first significant rally that took the price to $ 2.47 began on September 24, 2020. The market high was reached on May 15, 2021 and corrected to $ 0.99.
After that, ADA made the next rally from the daily low of $ 1.02 recorded on July 20th. The upside momentum has been extremely positive this time around and a new ATH was set at $ 3.01 on September 3rd. Since then, ADA has faced severe corrections avoiding most of the general upward momentum in the market.
What is the main similarity between the two demonstrations? ADA is both bullish at Fibonacci 0.618. In any of the above correction, the 0.618 Fib will be the final level after which the asset will move in a positive direction.
At the time of writing, the 0.618 Fib is $ 1.81. This means that the price is at the last support level.
Are the fundamentals for the uptrend?
Data from Intotheblock shows that investors who bought in the $ 1.58-2.14 range are currently at a loss. At the time of this writing, nearly 30% of the addresses are profitable while 70% of the addresses will be lost.
However, if you look at total profit, nearly 1.72 million addresses have a profit and 1.55 million addresses have a loss. The statistics also show that ADA has not that strong support between $ 1.5-1.8 and the volume concentration remains between $ 1.30-1.57.
Since an increase is still forecast in December 2021, investors should keep an eye on this level over the next few days. This could be the last buying opportunity before that altcoin breaks out.
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According to AMBCrypto