Cardano (ADA) is currently trading at $0.3347, showing a modest increase of 0.02% over the past day. This slight rise forms part of a broader pattern, revealing key support and resistance levels that are critical in understanding ADA’s price movements.
Immediate support for ADA is observed around $0.325. This level has been pivotal in the past, with the price bouncing back multiple times from this point. This repeated price action highlights $0.325 as a significant buying zone.
A dip below this level could suggest further weakness and prompt increased selling pressure. Another crucial support level is approximately $0.315, where ADA has demonstrated strong resilience historically. The price has found stability and recovered from this point before, underscoring its importance as a robust support zone.
On the resistance front, ADA is currently testing the $0.335 mark. This immediate resistance level is being closely monitored, and a decisive breakout above it could signal further upward momentum. Additionally, the $0.340 level is significant, having acted as a peak before the recent decline. A successful breach of this resistance could lead to substantial gains for ADA.
The market cap of Cardano is $12,025,909,287, with a 24-hour trading volume of $343,529,476, reflecting a minor decrease of 1.27%. This drop in volume might indicate consolidation or a temporary reduction in trading interest. Lower trading volumes are often seen during periods of consolidation or diminished market enthusiasm.
Currently, ADA exhibits a ‘V’ shaped recovery following a daily dip, which suggests potential stabilization. The price is fluctuating between $0.325 and $0.335, showing consolidation within this range. The 1-day RSI reading of 36.53 suggests that ADA might be nearing oversold conditions, signaling a possible rebound.
Source: Into The Block
Many addresses acquired ADA around $0.30, making this level particularly critical. If the price drops below $0.30, it could trigger a significant sell-off as investors might panic to minimize their losses.
Approximately 540,000 addresses, holding an average of 5.56 ADA, bought the asset between $0.30 and $0.22. Consequently, a decline below $0.30 could lead to a wave of panic selling.
The Long/Short ratio on Coinglass indicates that leveraged long positions increased from 46% to 49% between August 2 and 6. However, this figure has since declined, suggesting a more cautious outlook.
