Cardano price still trades below the $1 mark currently trading at $0.8525 with a 1.5% rise in the last 24 hours.
However, this slight price rebound presents a mixed sentiment on the cryptocurrency, as crucial support levels are headed towards a breakdown.
The current focus is on critical demand zones that may set the stage for the asset’s next move.
Cardano Price Key Support Zones: $0.77 and $0.68
IntoTheBlock data reveals a major support level between $0.8366 and $0.6683. In that range, 223,070 wallets together bought 1.97 billion ADA.
This zone is the first major demand barrier for Cardano. Bulls can use this area to prevent the price from going down even more.
Another level of support is between $0.68 and $0.77. History shows that this level has often acted as the key support for Cardano.
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On several occasions, it has served as a support against the decline and as a platform for the short-term rally.
Nonetheless, a breakdown of the support area at $0.5973-$0.7556 will lead to a sharp price decline. More than 405,660 addresses bought 5.39 billion ADA at an average of $0.5973, further supporting this level.
If this area breaks down, Cardano may fall as low as 46%, with the next support level at $0.46. The $0.46 support level seen in previous pullbacks marks a rebound point at which 432,150 addresses acquired 3.5 billion ADA.
This level has acted as support in the past, however, if the value is to reach this level then there would have been a big loss.
Historical Context of Demand Zones And Technical Analysis
Furthermore, it is clear why these demand zones are important by looking at the history of Cardano’s Price.
The level of $0.5973-$0.7556 has been the main level for both support and resistance levels in the given timeframe.
This zone in December 2023 and March 2024 has produced negative pressure which results in price rejections and corrections.
On the other hand, the dynamics of the pair made it a temporary support level in November 2024, which confirmed the role of the level in the price dynamics.
Also, the moving average gives a positive signal for a bullish opening as the MACD line crosses over the signal line in the 4-hour chart suggesting that the momentum might shift upward.
At the time of writing, Cardano (ADA/USD) is hovering around $0.8595 having pulled back from recent lows.
This further bullish potential can be seen if the price breaks through the $0.87 level of resistance, however support of $0.84 is necessary for the stability of the price.
Also, Cardano whales have continued to accumulate more and have purchased more than 20 million ADA within two days.
This rise in whale activity is a good sign and shows that more and more investors are starting to believe in ADA’s capability.
An increase in trading activity to $917 million is suggestive of high stake market interest meaning that there is a high likelihood of upward price action in the near future for Cardano.
