Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is in the midst of a pivotal moment as the value of 2 billion ADA is at stake.
From January 19 lows of $0.471, the price of ADA rose and continued to rise as of press time. Following the approval of Bitcoin spot ETFs, the whole cryptocurrency market saw a correction from its peak, and ADA appeared to follow suit.
With the market rebounding from the severe decline, the price of ADA is presently up 1.16% to $0.518 over the past 24 hours.
192,030 addresses purchased 2 billion ADA at an average price of $0.509, placing Cardano in a crucial demand zone between $0.489 and $0.526. This information is based on IntoTheBlock’s Global In/Out of the Money. As many investors would want to protect their holdings and stop additional losses, this zone serves as a powerful support level.
The next significant support for Cardano’s price, if it holds, is probably in the $0.392–$0.487 region, when 439,620 addresses bought $3.02 billion worth of ADA.
Positively, Cardano has a large supply barrier between $0.526 and $0.562, where 2.04 billion ADA are held by 136,470 addresses. On the daily chart, this zone is in line with the daily MA 50. Therefore, in order to validate a bullish trend reversal and pave the way for more gains, a clean break above this level is required.
The general mood and trajectory of the cryptocurrency market, which has been exhibiting signs of recovery since the steep drops following the ETF approval, have a significant impact on Cardano’s price performance.
According to reports, Cardano’s foundations are still solid, and additional releases and updates are expected in 2024.
Having said that, it’s possible that Cardano may pick up steam again, but this is still uncertain. However, the above-mentioned critical levels, as well as the general mood and volatility of the market, will determine the short-term price movement.
