Cardano (ADA) is currently trading just below the critical resistance level of $0.33 after a week of intense fear and uncertainty in the market. However, on-chain data from IntoTheBlock suggests that some investors see this as a potential buying opportunity, anticipating a market recovery in the near future.

Despite the broader decline, some indicators point to growing optimism as some of the market appears to be accumulating ADA at these levels. This suggests that investors may be expecting a reversal soon.

As the market continues to move, these metrics could provide key insights for those wondering whether Cardano is worth buying right now or if a deeper correction is likely. With ADA at a critical juncture, investors are closely monitoring price action and data to determine if this could be a turning point for the asset.

Are Cardano investors getting ready to buy?

Data from IntoTheBlock reveals that some investors are seeing Cardano (ADA) as a promising buying opportunity ahead of a potential market recovery. One notable indicator confirming this is Exchange On-chain Market Depth, which tracks order books on 20 major exchanges. The data shows that participants have placed buy orders for 220 million ADA tokens, which is over $70 million at the current market price. Bearish traders, on the other hand, have placed sell orders for less than 170 million ADA tokens, valued at around $52 million.

This disparity between buy and sell volume suggests that Cardano’s price may be ready for an uptrend. When buy orders significantly outweigh sell orders, it often signals that investor sentiment is becoming more positive, which could drive the price higher. As long as this trend continues and buying pressure prevails, Cardano could see a rally in the near future.

However, despite the confident outlook of some investors, the broader market remains rife with uncertainty, with Cardano still facing resistance at $0.33. Overall market sentiment and external factors will play a key role in determining whether ADA can break through this resistance and enter a more sustained uptrend. Nevertheless, the current data suggests a favorable environment for a potential recovery if the positive sentiment continues.

ADA price action

ADA stock is currently trading at $0.32, facing uncertainty as it attempts to break through the $0.33 resistance level that acted as support in early August.

The asset remains under pressure, trading below the 4-hour 200-minute moving average (MA) at $0.3446. This is a key indicator of near-term strength, and its current position signals weakness. For bulls to regain momentum, ADA needs to break through resistance at $0.33 and reclaim the 4-hour 200-minute MA as support. Achieving this would strengthen the bullish case, potentially leading to a rally.

However, if ADA fails to break through these resistance levels, the outlook could turn bearish. The next significant support is at $0.30, and a break of this level would signal further downside potential.

Traders are closely watching how price action around the $0.33 resistance and the 200 MA will determine whether ADA can rebound or face a deeper correction. Market uncertainty makes these levels crucial to ADA’s near-term direction.

Featured image is from Dall-E, chart is from TradingView