Cardano (ADA) is one of the worst-hit cryptocurrencies on the market in the wake of the 2022 crypto winter. Falling throughout the year from its $3 high in November 2021, Cardano is now more than 80% down in price.
However, it is often said that the best time to buy a cryptocurrency maybe during a heavy dip. And as far as dips go, Cardano has taken a heavy enough beating.
Traders and analysts across the market are beginning to ask: "Is this the right time to start bagging Cardano?"
Compared to the rest of the market, has Cardano hit its bottom? Let's find out.
According to a tweet posted by the economist and crypto analyst Michael Van De Poppe this week, Cardano may already be at its low, as far as this bear market is concerned.
In this tweet to all 638 thousand of his followers, Van De Poppe describes this setup on ADA as a "massive area to buy for investments."
In October this year, Cardano finally hit what can only be described as "the low of lows" around $0.33.
After hitting this $0.33 low, ADA bounced, printing three successive green candles on the daily chart and confirming this level as support. Recall that this zone was last tested in May 2018 and once in January 2021.
As illustrated above, the RSI on the weekly timeframe also shows bullish conditions and appears to be on the verge of a bullish crossover.
If the bulls continue pushing ADA to the upside and the bullish momentum continues, the next resistance zone would have to be the $0.6 zone.
A break below the $0.33 zone would spell a greater fall for the cryptocurrency and further lower lows.
On lower timeframes (4hr), ADA appears to be in a descending channel, supporting the hypothesis that a breakout to the upside may happen.
The cryptocurrency is currently testing the upper resistance of the descending triangle around $0.41 and may breakout to the upside for a test of the $0.6 zone as specified. Either this happens, or Cardano breaks below the $0.33 zone and plunges further into uncharted territory.
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