Cardano ADA

Cardano (ADA) Teeters on This Critical Support Zones Amid Persistent Downtrend

Cardano (ADA), the ninth-largest cryptocurrency by market cap, continues to struggle below the psychological $1 price mark. The cryptocurrency dropped beneath this level in mid-December and reached an intra-month low of $0.7620, signaling a tough period for ADA holders. Despite efforts by the bulls, the bear market continues to dominate, with Cardano experiencing its third consecutive weekly downtrend last week.

Amidst the correction, on-chain data has revealed critical support levels that could help ADA weather the storm and avoid further declines. According to IntoTheBlock’s analysis, Cardano has established several key demand zones that might provide price stability if the bearish momentum persists.

Key Support Levels for Cardano

One of the first major support walls for ADA exists between the prices of $0.8366 and $0.6683, where 223,070 wallets collectively acquired 1.97 billion ADA. This demand zone has been identified as crucial for ADA’s price action, with bulls likely to leverage it to defend against a deeper drop. If the price fails to hold in this range, the next major support is between $0.5353 and $0.6683, where a larger accumulation of 405,660 wallets holds 5.39 billion ADA. This zone provides significant backup for ADA, offering a solid foundation in case the market continues to decline.

Cardano Demand Block
Cardano Demand Block

Additionally, market data highlights a support level between $0.68 and $0.77, which has repeatedly shown resilience in ADA’s price history. This zone has been pivotal in preventing further downtrends, including a bounce on December 20, when the asset reached a low of $0.7620.

Cardano Support Ali Martinez
Cardano Support | Ali Martinez

Price Action Confirming Demand Zone’s Importance

Cardano’s price action in the $0.5973 to $0.7556 range further underlines the importance of this support zone. In previous cycles, the demand zone provided temporary relief from the ongoing downtrend, as seen during the 2022 correction and the resistance flip in December 2023 and March 2024. ADA broke through this resistance in November, turning it into a critical support region.

Source: CMC Data

If Cardano fails to maintain its current support level, the next potential stop could be $0.4600, where another major demand zone exists. A drop to this level could represent a 46% correction, which would likely have a significant impact on market sentiment.

Also Read: Cardano’s Rocky Road to $1: Will ADA Ignite a Bullish Comeback in Early 2025?

At the time of writing, ADA is trading at $0.8715, up 1.37% in the past 24 hours, signaling a potential short-term rebound, but the long-term trend remains uncertain.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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