Cardano (ADA) Faces 8% Decline Daily, Yet Key Indicator Signals Buy Opportunity

As December unfolds, a notable correction has hit the cryptocurrency market, impacting numerous leading coins. Among them, Cardano’s ADA has seen a significant drop of 8% within the last 24 hours. This situation begs the question: is this dip a potential buying opportunity?

Are the Bulls Ready to Come Back?

For the past few months, Cardano investors have faced a tough scenario, with the asset currently valued below $0.40, reflecting a 60% downturn since its peak in mid-September. Cardano’s market cap has fallen under $15 billion, which could hinder its position in the top ten cryptocurrencies.

ADA Price ADA Price, Source: CoinGecko

Yet, despite these bearish signals, some market analysts are holding onto hope. Analyst Ali Martinez has observed recent trends in ADA’s price action, highlighting that the TD Sequential has indicated a buy signal.

Additionally, Marcus Cornivus pointed out that the price range between $0.38 and $0.40 represents a significant demand area. If this support holds, it may act as a launching point for further price increases. According to Cornivus, if momentum picks up, we could see a breakthrough toward the $0.82 to $0.85 region.

“This is the moment where ADA tells the story. Hold the base and the bounce fires. Lose it and the structure shifts. Right now, the odds lean toward strength, and the chart is still alive with energy,” the analyst concluded.

Amid this recent outlook, another analyst, known as Smith, expressed that he remains unfazed by ADA’s current drop, viewing it as a chance to increase his holdings. He suggests that ADA might potentially surge above $3.

Monitoring Other Metrics

The Relative Strength Index (RSI) for ADA supports the possibility of a short-term recovery. The RSI, which gauges the velocity and magnitude of price shifts, currently sits below 30, indicating oversold conditions and a possible entry point for buyers. Conversely, levels above 70 are often viewed as a sign of bearish sentiment.