- Cardano’s development activity is expected to return to average after the holidays.
- The price action showed that a rebound of $0.535 is possible.
Cardano [ADA] saw a major downward move on January 3. This came in addition to a Bitcoin [BTC] decrease from $45.8k to $40.8k. Despite the short-term losses, ADA buyers weren’t overwhelmed by the bears.
On the contrary, prices were trading near a demand zone. The network has performed admirably in 2023 and will likely continue that progress in 2024. This is what the price charts reveal.
The range low will be important to the buyers
Source: ADA/USDT on TradingView
ADA has been trading within a certain range since December 14, although this only became clear a few days later. The range (purple) extended from $0.51 to $0.68.
The mid-level at $0.595 has served as a strong support level over the past two weeks.
This was breached on January 3 after Bitcoin suffered heavy losses and dragged the market down. This move also confirmed the importance of the bullish 4-hour order block (cyan box) at $0.535 for Cardano buyers.
At the time of writing, the H12 RSI was trading below the neutral 50 to reflect the bearish momentum in the market. The OBV has been slowly climbing higher since Christmas, but the bulls have not been overwhelmingly strong.
The figures showed strong selling pressure towards the end of the year
Source: Santiment
On December 27, the age index had a large upward spike. It was accompanied by a rapid decline in ADA’s average coinage era. Together they showed that a large amount of dormant tokens were moved and the holders sold the tokens.
Read Cardanos [ADA] Price forecast 2023-24
Development activity has been high in recent months, but as expected saw a big drop during the holidays. It is expected that this will soon rise again to the usual level.
The social volume was also relatively high. The average coin age also started to increase. All things considered, ADA could likely see another move north.
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.