Journalist
Published:
- ADA is down more than 16% in the past 24 hours.
- Increased on-chain activity shows network growth, but cautious sentiment clouds ADA’s recovery.
The cryptocurrency market has seen volatility recently, and Cardano (ADA) has been no exception.
The digital asset fell below the crucial support level of $1.20, a price level where around 93,000 addresses had previously acquired 2.54 billion ADA.
This development raises questions about its near-term price trajectory and potential support zones.
Cardano decline and key support levels
Cardano price has been in a downward trend as seen in the daily chart.
After hitting the $1.20 mark, which served as a strong support level due to significant holder accumulation, ADA has now fallen below this critical threshold.
The next notable area of demand is around the $1 mark, where further accumulation could provide much-needed stability.
Source: TradingView
Price chart analysis by AMBCrypto revealed declining momentum, with ADA trading at around $0.97 at the time of writing.
Indicators such as the Relative Strength Index (RSI) indicate a neutral position, suggesting a balance between buying and selling pressure.
However, the Turbulence Index indicated that the market may remain volatile in the near term, further complicating ADA’s price recovery.
Channel Information
The In/Out of the Money Around Price chart provided additional insight into Cardano’s price levels. According to the data, the $1.20 level was home to many holders, making it a crucial area for market stability.
If this level is exceeded, the market could experience increased selling pressure, particularly from those who acquired ADA at higher prices.
Additionally, approximately 34.44% of ADA is “in the money” (held at a profit), while 64.68% remains “out of the money” (held at a loss).
This breakdown reflects the precarious position of many ADA holders, which could influence market sentiment and trading activity in the coming days.
Active addresses on the rise
Interestingly, Cardano’s on-chain activity has been increasing. The 30-day active address showed steady growth, reaching 1.24 million.
This increase indicates sustained engagement with the Cardano network, potentially driven by the evolution of its 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 breakdown of the $1.20 support.
Realistic or not, here is the market capitalization of ADA in terms of BTC
Cardano’s fall below $1.20 marks a significant change in its price dynamics.
While the $1 level may serve as the next support area, broader market conditions and Cardano’s ability to maintain network activity will be crucial for price recovery.
