Cardano (ADA), the 10th-largest cryptocurrency by market cap, is currently trading within a crucial price range that holds significant implications for its short-term price movement.
Cardano (ADA) was down 0.82% to $0.382 at the time of writing, having fallen as low as $0.375 earlier in the day. ADA is mirroring a broader market sell-off, which saw Bitcoin slump to a more than one-month low, and the crypto market rally is showing signs of fatigue in the absence of fresh market catalysts. ADA fell to a low of $0.366 on June 18 and is still down 8.76% weekly.
According to data from IntoTheBlock, a notable 2.35 billion ADA were acquired by 159,400 addresses within Cardano's current range of $0.38 to $0.394, averaging out to $0.387 per ADA. This accumulation marks a key support zone for the ADA price.
What's next for ADA price?
The present trading range, where substantial buying activity occurred, highlights a critical support level. If the Cardano price declines further, market watchers and ADA holders might look to the next anticipated support zone, which lies between $0.373 and $0.38. This range could provide a safety net for the cryptocurrency, potentially curbing further declines.
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On the flip side, if ADA's price rebounds from its current levels, it may face its next significant resistance between $0.394 and $0.437. Within this upper range, 2.64 billion ADA were bought by 206,880 addresses, with an average price of $0.414. This area could present a formidable challenge for upward momentum, requiring strong buying pressure to break through.
Currently, on-chain data suggests that the ADA price might be reaching a crucial juncture. The enormous volume of ADA bought at the highlighted price levels indicates significant support, but it might also suggest potential resistance that could slow down bullish momentum. Traders can keep an eye on these critical price points for cues as to ADA's next big move as well as broader market trends and investor sentiment.
