Journalist
Posted:
- The ADA has decreased by more than 16% in the past 24 hours.
- Rising activity in the chain shows network growth, but cautious sentiment clouds ADA’s recovery.
The cryptocurrency market has been witnessing volatility lately, and Cardano [ADA] has been no exception.
The digital assets fell below the crucial support level of $1.20, a price level where approximately 93,000 addresses had previously acquired 2.54 billion ADA.
This development raises questions about the short-term price trajectory and potential support zones.
Cardano’s decline and key support levels
Cardano’s price is in a downward trend as shown by the daily chart.
After reaching the $1.20 mark, which acted as a strong support level due to significant accumulation by holders, ADA has now fallen below this critical threshold.
The next notable demand zone is around $1, where additional accumulation could provide some much-needed stability.
Source: TradingView
AMBCrypto’s analysis of the price chart revealed a decline in momentum, with ADA trading at around $0.97 at the time of writing.
Indicators such as the Relative Strength Index (RSI) pointed to a neutral stance, indicating a balance between buying and selling pressure.
However, the Choppiness Index indicated that the market could remain choppy in the near term, which would further complicate ADA’s price recovery.
Insights into the chain
The In/out of the money around the price chart provided additional insight into Cardano’s price levels. According to the data, the $1.20 level hosted many holders, making it a crucial area for market stability.
If this level is exceeded, the market may experience increased selling pressure, especially from those who purchased ADA at higher prices.
Additionally, approximately 34.44% of the ADA is in the money (held at a profit), while 64.68% remains out of the money (held at a loss).
This distribution reflects the precarious position of many ADA holders, which could impact market sentiment and trading activity in the coming days.
Active addresses on the rise
Interestingly, Cardano’s on-chain activity has increased. The 30-day active address showed steady growth, reaching 1.24 million.
This increase indicated a continued commitment to the Cardano network, possibly driven by developments in the ecosystem and anticipation of future updates.
Source: Santiment
However, it remains to be seen whether this increase in network activity can translate into a price recovery, especially as market sentiment appears cautious following the breach of the $1.20 support.
Realistic or not, here is the market cap of ADA in terms of BTC
Cardano’s dip below $1.20 marks a significant shift in price dynamics.
While the $1 level could act as the next support zone, broader market conditions and Cardano’s ability to maintain network activity will be crucial to the price recovery.