Wang Pang discusses the situation with ADA, saying a few simple words:
Recently, ADA has shown strong resistance to declines; when the broader market was generally falling, it instead rose by 3.5%, making it the only one among the top 50 coins to go up. It has also risen 20% in the past week. Although market sentiment is relatively cautious, its performance is considered strong. It is currently fluctuating between $0.89 and $0.91, and if it can stabilize, there may be room for further increases.
Key levels to remember: the support level is at $0.89, which is the core of the short-term uptrend; if it breaks below this, it may drop to $0.84. The resistance level is at $0.98; if it can effectively break through, buying interest may become more active, and it might even push to $1.02 or higher. Additionally, ADA has also experienced a golden cross, which historically tends to lead to good increases after this signal. However, the recent surge in volume, while indicating high buying enthusiasm, should be approached with caution regarding the risk of stagnation with increased volume or a decrease in volume for a pullback.
In terms of market influence, Bitcoin's situation is very important: if Bitcoin cannot hold the support level of $117,000-$118,000, it might fall to $105,000-$110,000, which would likely drag ADA down as well. The overall liquidity of altcoins is also significant; if the broader market stabilizes, funds may shift to strong altcoins like ADA.
Risks should also be noted: the U.S. PPI inflation rate is at 3.3%, which is considerably higher than expected, and the uncertain macro environment may lead to greater market volatility. Additionally, there have been instances of large funds reducing their holdings of ADA in the past; if the price rebounds, it may encounter selling pressure.
Wang Pang recommends: consider lightly buying near $0.8145-$0.8175, with a target of $0.8250-$0.8301. Lastly, with many variables in the market, it’s important to be defensive and protect your principal first and foremost. #ADA
