Cardano (ADA), the 8th largest cryptocurrency by market capitalization, faces a decisive moment as 2 billion ADA are at stake depending on price action.
Cardano (ADA), the 8th largest cryptocurrency by market capitalization, faces a decisive moment as 2 billion ADA are at stake depending on price action.
ADA price recovered from lows of $0.471 on January 19 and maintained this recovery at the time of this publication. The entire cryptocurrency market corrected from its peak when Bitcoin spot ETFs were approved, and ADA seemed to reflect the same trend.
In line with the market recovery after the sharp drop, ADA price is currently trading in the green, up 1.16% in the last 24 hours to $0.518.
According In the blockIn the global inflow/outflow of money, Cardano is in a critical demand zone ranging between $0.489 and $0.526, where 192,030 addresses purchased 2 billion ADA at an average price of $0.509. This area acts as a strong support level, as many investors would try to defend their positions and avoid further losses.
However, if this zone does not hold, Cardano price is likely to find the next strong support in the range between $0.392 and $0.487, where 439,620 addresses bought 3.02 billion ADA.
On the upside, Cardano faces a significant supply barrier between $0.526 and $0.562, where 136,470 addresses contain 2.04 billion ADA. This zone coincides with the daily MA 50, as seen on the daily chart. Therefore, a clear break above this level is needed to confirm an uptrend reversal and open the door to further gains.
Cardano’s price performance largely depends on the overall sentiment and direction of the cryptocurrency market, which has been showing signs of recovery since the sharp declines following the ETF’s approval.
Cardano’s fundamentals also remain strong, and the year 2024 will usher in new launches and updates, as reported.
That being said, Cardano could potentially regain its momentum, although this possibility remains unknown. However, price action in the near term will depend on the key levels mentioned above as well as overall market sentiment and volatility.
