Cardano (ADA) price near key support as analyst points to buy signal

• Cardano (ADA) price is near $0.37, a key support area for the coin as altcoins decline. 
• An analyst says the 4-hour chart shows a potential buy signal for ADA.
• A rebound for Cardano could also be helped by a flip in on-chain metrics.

As cryptocurrencies pulled back on Monday, Cardano (ADA) saw its price drop below $0.38 again, pushing the altcoin to a support level seen as prices rose last week. But is ADA poised for a rebound?

A crypto analyst shared the forecast below on X.

Analyst points to ADA buy signal

While the overall declines across the market might see sellers attempt at extending their grip, a crypto analyst says a potential buy signal for ADA is formed on the 4-hour chart. What technical indicators support the analyst’s take?

Here’s the prediction.

“Look how the 100-EMA on the 4-hour chart has acted as a rebound zone for $ADA while the $0.396 level acts as a stiff resistance,” Ali noted in a post on X.

According to the analyst, there is a buy signal for ADA within the 4-hour time frame, with the highlighted 100-EMA continuing to act as a crucial rebound area. Nonetheless, traders might want to be keen on Cardano price’s candlestick close on the 4-hour chart.

He explained:

“The TD Sequential now presents a buy signal within this time frame around the 100-EMA, anticipating another rebound. However, you must pay attention to a 4-hour candlestick close above the $0.396 resistance or below the 100-EMA to confirm the direction of #ADA trend.”

#Cardano | Look how the 100-EMA on the 4-hour chart has acted as a rebound zone for $ADA while the $0.396 level acts as a stiff resistance.

The TD Sequential now presents a buy signal within this time frame around the 100-EMA, anticipating another rebound. However, you must pay… pic.twitter.com/bi4Lzg4rUr

— Ali (@ali_charts) November 27, 2023

It’s notable that despite Cardano price being marginally in the red on the day and this past seven days (roughly 1.4% and 2% respectively), the overall outlook is that ADA remains in an uptrend. Other than the technical perspective, a number of on-chain metrics support an upside continuation.

Cardano’s Net Realized Profit/Loss (NPL) and Market Value to Realized Value (MVRV) ratio have recently flashed green, with the outlook helped by bullish developments in the cryptocurrency’s decentralisation.

The blockchain network also…