Ali Charts, a renowned crypto analyst, points to a promising buy signal for Cardano (ADA). This signal comes after the currency’s price touched the 0.618 Fibonacci retracement level, a classic move in technical trading that many analysts view as a potential indicator of future price movements.
The 0.618 level is a crucial aspect of the Fibonacci retracement tool, applied by connecting notable high and low price points. It divides the vertical span using essential Fibonacci ratios, such as 23.6%, 38.2%, 50%, 61.8%, and 100%. Traders monitor these points for potential indications of either a shift in the trend or its ongoing continuation upon price reaching them. In the context of Cardano, interacting with the 0.618 level is seen as a positive indicator, hinting at a potential bullish move and a subsequent price increase.
Ali’s analysis suggests that should the current buy signal prove sustainable, ADA might successfully surpass the existing resistance at $0.55. This breakthrough has the potential to pave the way for reaching elevated price objectives. Ali highlighted $0.69 as the subsequent focal point, followed by a more ambitious target of $0.93.
The digital currency has experienced a notable rally in the past, with a significant increase that led to the establishment of a resistance zone around the $0.69 level. This zone is highlighted as a box on the chart, indicating a place where selling pressure previously overcame buying momentum, causing the price to fall.
However, with the current bullish signal, there is speculation that a renewed push from buyers could lead the price to revisit and possibly break through this zone. As of the latest update, ADA’s price is quoted at $0.4984 signalling a 2.70% plummet in the last 24 hours.
Investors are now closely monitoring Cardano, awaiting confirmation of the bullish trend suggested by the recent touch of the 0.618 Fibonacci level. Should the price action follow through on this signal, it could herald an exciting period for Cardano, with the potential for notable gains in the near term.
