Cardano Holds Key Support Zone Between $0.77 and $0.68
Cardano (ADA) has experienced a 42% decline from its December high of $1.32, reflecting broader market uncertainty. However, on-chain data indicates a potential recovery as whale accumulation increases.
Analyst Ali Martinez highlights that ADA's critical support zone is between $0.77 and $0.68, which has historically stabilized the price. This support is crucial for ADA to maintain stability amid short-term volatility. The interest from large holders suggests confidence in ADA's long-term potential, with market participants monitoring for breakout signs.
Cardano Setting The Stage For A Move
Following a downturn after November's rally, ADA is consolidating above key support levels, indicating potential for a rebound. Martinez's technical analysis emphasizes the importance of the $0.77 to $0.68 range, which ADA must hold to reverse the bearish trend.
Increased whale activity during this phase suggests major investors are accumulating ADA at lower prices, signaling confidence in its long-term prospects. If ADA maintains its position above the support zone, it could pave the way for a significant rally.
Price Action: Key Supply To Test
Currently trading at $0.87, ADA faces selling pressure but remains resilient above critical support levels. The upcoming days are vital for determining its direction.
A pivotal milestone exists at the $1 mark, serving as psychological resistance. Successfully reclaiming this level could lead to a rally targeting the yearly high of $1.32. Conversely, intensified selling pressure may test lower demand zones around $0.75, potentially leading to further consolidation.
Featured image from Dall-E, chart from TradingView