Cardano (ADA) Slumps Below Major Support Level – Is it the Best Time to Buy the Dip?

The crypto market kicked off May positively, with most coins posting notable recovery; however, amidst this uptrend, Cardano ADA faced challenges.

On May 2, ADA saw a 15% rally, climbing above $0.474 from a low of $0.42. However, it faced stiff resistance at the $0.50 mark, leading to a retracement, with prices dipping to $0.44.

ADA trades at $0.4422, below its crucial support level. Although its price has declined more than 2% in the last 24 hours, it has maintained a 2.45% increase in the previous seven days.

Amid the ongoing dips, top analysts think now might be the right time to buy some Cardano tokens. But will ADA recover? Let's examine this analysis in depth.

Crypto Analysts See Massive Upside for Cardano (ADA) After Recent Price Drop

Crypto analyst Ali Martinez believes that Cardano's (ADA) latest dip presents a good chance for investors to buy the token. In a recent X thread, Martinez analyzed ADA's past price movements and compared them to what's happening in the market today.

#Cardano seems ready for a parabolic bull run! Observing historical trends, the 50% price drop $ADA faced in the past month could be a golden opportunity.

Let's unpack the details and see why now might be the right time to buy the #ADA dip!

- Ali (@ali_charts) May 3, 2024

Martinez pointed out that in 2019, Cardano went through a period of consolidation within a parallel channel. According to him, this signals the end of the downward market.

After staying steady for a while, the price of ADA suddenly increased by 75% but dropped by 56%. This drop paved the way for a massive increase of 4,095% in ADA's price.

While history doesn't repeat exactly, it often shows similar patterns. So, Martinez thinks ADA will plummet 50% again, just like before, creating room for a more bogus rally. He says this might be one of the last chances to buy ADA at a low price before its price skyrockets.

Recall that on May 02, 2024, Ali Martinez predicted a buy signal for ADA based on the TD Sequential indicator on the daily chart.

The TD Sequential, which timed the #Cardano top, now presents a buy signal on the #ADA daily chart. It anticipates a one to four daily candlesticks rebound that could put an end to the $ADA corrective phase. pic.twitter.com/QRmYJVfk2b

- Ali (@ali_charts) May 2, 2024

The signal suggests that Cardano's price might rally again for one to four days, ending the current period of price downturn.

For investors, Martinez's analysis could be seen as a bullish signal for Cardano. If his predictions based on historical patterns play out, those who accumulate ADA during this dip could benefit from substantial gains.

Cardano (ADA) Price Analysis: Potential Rebound After Further Downside?

The price of Cardano (ADA) has faced significant selling pressure recently, as the coin broke below a strong support level of around $0.45. However, there are indications that a retracement could be on the horizon.

The Relative Strength Index (RSI) is at 32, suggesting an oversold condition. This level often precedes a potential price reversal, indicating that the asset has entered a region where buyers might enter and trigger a retracement.

Furthermore, ADA is heading towards the lower Bollinger Band indicator, a potential support level. If the price finds support at the lower Bollinger Band, it could signal a rebound in the market, and the trajectory could turn bullish from this level.

Although the overall sentiment is bearish, the Moving Average Convergence Divergence is still above its signal line, indicating buying momentum in the market.

Based on the technical chart analysis, ADA may continue its downward movement toward the monthly low of $0.39.This level could act as a crucial support zone, and a rebound from this point could propel ADA back above the $0.50 flip zone.

For traders considering entering a position, it might be prudent to wait for further downside and let the price find support at the $0.39 level.

If the support holds and a rebound occurs, it could present an attractive buying opportunity. Conversely, a break below the $0.39 support could signal a continuation of the downtrend.

However, exercising caution and conducting thorough research before making investment decisions is crucial to avoid unexpected losses.

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