- Cardano faces resistance at key supply zone, impacting potential price movement.
- Bullish indicators suggest short-term optimism, despite ongoing market volatility.
Cardano (ADA) is trading at $0.3429, reflecting a 4% decline in the past 24 hours and hitting a weekly low of $0.3396. Over the past month, ADA has dropped by 7%. During this period, its price action has been relatively volatile, with slight declines of 5% over the past week.
ADA has now entered a crucial supply zone, ranging between $0.3680 and $0.3823, which could determine its next move. Breaking through this zone is essential for the token to target the $0.4158 mark. Failure to breach it could trigger a decline toward $0.3566, which might serve as a support level.
Meanwhile, Key indicators like Open Interest (OI) and Funding Rate suggest that ADA’s bullish momentum is still intact. OI has increased by 6.49% to $252.62 million, signalling heightened market interest. A rise in OI often correlates with positive price movements, indicating that traders are optimistic about ADA’s short-term prospects. Similarly, ADA’s funding rate, currently at 0.0132%, supports a positive outlook, pointing to trader sentiment favouring long positions.
However, the Relative Strength Index (RSI) presents a cautionary signal. Currently at 67.36, it is nearing the overbought territory above 70, which could result in a price correction if the threshold is crossed.
Cardano Traders Can Expect Rally?
Despite short-term fluctuations, Cardano’s long-term price movement faces challenges. The token’s price has struggled since its first-quarter rally in 2024, with significant resistance at the $1.04 level, where over 1 million addresses hold 2 billion ADA. Additionally, Cardano’s Mean Dollar Invested Age (MDIA), an indicator of long-term holder activity, continues to rise, signalling potential stagnation in investor behaviour.
While Cardano could face further dips, broader market conditions, such as a Bitcoin rally, may provide support for a recovery. Should Bitcoin break above $70,000, ADA could revisit higher levels, possibly reaching $0.61 and beyond.
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