The COVID variant Omicron managed to create a massive negative impact on the financial markets across the world. One of the cryptocurrency tokens that have felt the heat of the new market FUD is Cardano native currency ADA. During last week, the ADA token has lost 55% of its value from its latest ATH in September.
The new development has been invoked by the decision of eToro planning to revoke staking prizes for the Cardano and Tron native tokens for the USA-based crypto investors. At press time, Cardano token is trading for $1.80 after experiencing a massive correction from its latest ATH at $3.10. However, a new technical indicator shows the chance for a bullish development.
The Tom DeMark Sequential Indicator (TD) is used to determine a price turning point for an asset. According to the recent analysis of ADA, the TD indicator has published a red nine candle that can be translated as a bullish development for the Cardano native cryptocurrency. The new TD9 print shows a possibility for the emergence of 1-4 green candles signaling a buying pressure or demand surge.
However, analysts claim that ADA needs to push through the $1.60 resistance level to trace back its way up to the $1.80 per unit price. Despite the massive correction, Cardano has managed to retain its position as the 6th largest cryptocurrency by market cap at the crypto leaderboard. Market analysts claim that the investors might have opted to cash out at the $3.10 ATH to take profits resulting in the massive correction.
A crypto market indicator called IOMAP mode by IntoTheBlock shows that more than 93K digital wallet addresses have acquired 2 billion ADA tokens during the massive correction. The massive demand and investment interest in ADA have created a price strengthening position for the smart contracts enabled blockchain.
On the other hand, IOMAP also indicates that only 128K investors hold 2.8 billion ADA tokens at an average price of $1.48 to $1.53 per unit. According to the statistics, there is a chance that ADA investors chose to cash out, breaching the demand wall that can plunge the Cardano token into another corrective route. IOMAP cohorts declare a possibility for ADA dropping down to $1 if the TD bullish window is missed.