ADA is about to show reversal signals after the forced drop.
Cardano [ADA] may be nearing a tipping point. Integrated liquidation data indicates a potential capitulation phase, while broader market indicators reflect an extremely oversold condition — often a precursor to a strong recovery.
In the context of the cooling altcoin market, only small tokens still show strength, with some investors viewing this as a strategic accumulation opportunity before a broader recovery. Could this be the turning point that confident holders have been anticipating?
ADA is expected to reverse after the forced liquidation.
Cardano may have entered the final stage of an intense liquidation chain, with Alphractal's aggregated temperature chart featuring a long liquidation crowd around the $0.60 price range.
Source: Alphractal
This area has just become a psychological and technical support level after nearly 50 million USD in long positions were liquidated last month.
Usually, when leverage is pulled from the market, strategically timed entry points based on fear sentiment mark the beginning of stronger and more sustainable recoveries.
The altcoin market is cooling off, with only small-caps still holding heat.
The vast altcoin market seems to have run out of steam, with most tokens showing oversold signals on the 1-hour RSI. This is in stark contrast to the remaining hot momentum in small-caps.
This comprehensive cooling process increases the likelihood that ADA will become a convergence point for capital inflows as the market prepares to enter a strategic accumulation phase based on important technical support levels along with significant liquidation zones.
Source: X
The psychological race is calming down, with fear dominating the market. These psychological reset phases are often signs of capital shifting, reallocating into quality large-cap stocks like ADA.
Accompanied by deep liquidation zones and key technical support levels, creating optimal conditions for long-term positions of strategic investors.
The ability to seize opportunities from liquidation zones.
Opportunity? Why liquidation zones often mark the bottom.
Forced liquidations often benefit patient investors, especially when liquidity is pulled out and fear sentiment peaks. These phases are often turning points, where weak hands exit the market, and 'smart money' returns.
Currently, ADA stands near major liquidation zones and shows an oversold RSI, signaling the potential for a final accumulation phase. As small capital falters and funds begin to return to large-cap stocks, ADA may emerge as a leading candidate for the next market move.
This development reflects the previous cycle, where capitulation facilitated strategic accumulation phases, ultimately driving strong breakouts.
Source: https://tintucbitcoin.com/cardano-ada-dau-tu-thong-minh-hien-nay/
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