According to U.Today, the price of Cardano (ADA) has reached a crucial weekly support level, a point where buyers may intervene to prevent further drops. After weeks of consistent declines, ADA hit the weekly SMA 50 at $0.433, a level that has successfully supported the ADA price since late October 2023. The significance of ADA reaching this point cannot be overstated. The cryptocurrency market, led by Bitcoin, ended the previous week in negative territory as the government's employment data for May showed a higher than expected increase, with 272,000 jobs added.
At the time of reporting, ADA had risen by 0.54% in the last 24 hours to $0.439, a slight increase from the previous day's low of $0.432. The current price movement suggests that ADA is at a major support level, where a significant amount of ADA, nearly 3.47 billion coins, is held by a large number of addresses. Data from IntoTheBlock shows that 3.47 billion ADA were purchased by 350,940 addresses in the range of $0.371 and $0.431 at an average price of $0.3944.
If ADA can maintain above this support level, including its weekly SMA 50 support, and gain upward momentum, it could signal the beginning of a new bullish trend. Traders and analysts will be closely monitoring Cardano's price movement in the coming days to determine its next steps.
Cardano is currently trading in a symmetrical triangle pattern, indicating a tug of war between bulls and bears. Traders were able to push the ADA price over the daily SMA 50, which was $0.461, on June 7. ADA briefly reached highs of $0.49 before meeting resistance and the price began to fall. ADA is now trying to recover from a four-day losing streak. It remains to be seen how far bulls will take the recent price rebound. If buyers can break through the $0.49 barrier, ADA might rally to $0.62. There is a slight resistance at $0.57, but it is expected to be overcome. However, if Cardano falls below the daily SMA 50 at $0.461, it could mean that bulls are taking profits, keeping the ADA price trapped inside the triangle for some time.