Cardano Hovers in Crucial Demand Zone with Potential for New Highs and Corrections

According to CryptoPotato, Cardano (ADA) is currently within a critical demand zone, with potential for both new highs and corrective moves. The current price level of $0.37 is acting as a major support point for ADA, which could dictate its short-term trajectory. The TD Sequential indicator also signals caution. Crypto analyst Ali Martinez observed that ADA sits at a crucial demand zone, positioned between $0.37 and $0.38. This strategic zone, coupled with data indicating 166,470 wallets acquiring a substantial 4.88 billion ADA, has fueled optimism among traders. ADA is facing minimal resistance on its path to potential new yearly highs. The key demand zone acts as a solid foundation, providing support for ADA to build upon its recent gains. However, Martinez has urged traders to remain cautious and to closely monitor ADA’s performance, as a dip below the $0.37 support level could trigger a brief correction, potentially reaching $0.34. Further analysis reveals that the TD Sequential indicator for ADA has presented a sell signal on its weekly chart. This technical indicator suggests a potential shift in market dynamics. Losing the $0.37 support level, according to Martinez, might lead to a corrective move towards $0.34 or even $0.33. ADA must successfully close above $0.40 to climb toward the next target, according to Martinez. As such, crossing this threshold could set the stage for the asset to make a sustained push toward $0.46, marking a pivotal point in its trajectory. Cardano faced significant challenges stemming from regulatory uncertainties and heightened competition from layer-2 networks like Base, Arbitrum, and Optimism in the second half of 2023. Despite a temporary plateau, the network made a comeback with a notable surge in developer activity as it scored 572 throughout October and maintained its dominance in development activity within its public GitHub repositories. Meanwhile, Cardano’s on-chain metrics also indicate a positive outlook. As reported earlier, the total count of addresses holding a balance on Cardano is hovering near its record high of 4.46 million. Additionally, a modest increase has also been observed in the number of active addresses. Over the past month, the network has consistently maintained a transaction count of over 50,000, and the transaction volume has mostly stayed above $7 billion.