July 20, 2024

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Cardano Finds Breathing Room At $0.35 Support – Good For ADA?

2 min read
Cardano Finds Breathing Room At alt=

Cardano is somehow keeping in-step with cryptocurrency frontrunners Bitcoin and Ethereum, sitting on price increase on its intraday chart.

  • Cardano failed to hold the $0.41 crucial support range and settle to the new support marker of $0.36
  • ADA is forecasted to trade from $.0403 to $0.416 in the coming days
  • Cardano addresses grow despite bearish market sentiments

Tracking from Coingecko shows the smart contract token is trading at $0.371, raising its price by almost 1% during a 24-hour period.

The altcoin, however, continues to struggle as it remains in the red zone on its 7-day and 14-day metrics, going down by 7.6% and 13.3%, respectively.

Investors, holders and traders are keeping close watch on the price movement of the crypto as it tries to bounce back after failing to sustain the $0.41 crucial support marker.

At first it appeared the asset was in for another steep fall, but it managed to cling into a new support range which could prove to be significant in determining the trend of its next price rally.

Cardano Hangs On To $0.35 Support 

As seen from Cardano’s trading chart, the Bollinger band (blue line) continued to drop as ADA failed to hold the critical $0.41. It only stopped upon reaching the $0.35 marker.

Source: TradingView

Meanwhile, the crypto’s Relative Strength Index (RSI) tallied a low value of 23.4 which indicated Cardano was in oversold position and is primed for a price uptick.

If ADA manages to sustain its new support marker, a surge ranging from $0.403 to $0.416 will likely to happen over the next few days, enabling the token to start its own recovery along with other members of the crypto space.

However, if Cardano fails to hold this position again, bears will be given opportunity to gain profit as ADA will likely fall all the way to $0.336.

ADA Addresses Grow Despite Weak Value

In September 2021, Cardano managed to hit an all-time high value of $3.09. The crypto, however, already lost 80% of that value and continues to struggle to get even just to $1 marker.

But despite the immense price tanking that the asset continues to experience since hitting its ATH, retail investors seem to be unfazed.

In fact there is a noticeable increase of ADA addresses, indicating the crypto is still commanding interest among participants in crypto space.

Holders of 100 to 1,000 Cardano tokens are now accounting for 1.15% of the network’s circulating supply, going up by 0.23% from the previous tally of 0.92%.

Meanwhile, an almost identical increase is also observed to holders of 1,000 to 10,000 ADA coins which grew by 0.59%.

ADA market cap at $12 billion on the daily chart | Featured image from Shutterstock, Chart: TradingView.com

Disclaimer: The analysis represents the author's personal views and should not be construed as investment advice.