- Cardano’s ADA token experienced a 2.87% decrease, settling at $0.3806 in the last day.
- The current price marks a crucial support zone, with analysts suggesting the potential for further upside for Cardano.
- Analyst Ali Martinez highlighted substantial demand, with 166,470 wallet addresses acquiring ADA within the $0.37 to $0.38 range.
The price of Cardano’s ADA token has entered a period of consolidation over the past day, sliding 2.87% to $0.3806 at press time. This price level represents a crucial support zone, according to market analysts, who believe further upside could still be in store for the fifth-largest cryptocurrency by market capitalization.
In a tweet posted earlier today, analyst Ali Martinez noted substantial demand around Cardano’s current price range based on on-chain data. Over 166,470 wallet addresses acquired ADA at prices spanning $0.37 to $0.38. With strong underlying support at this level, Martinez suggests the blockchain network’s native asset could see a 20% price spike to revisit its 2022 high of $0.4518.
Often cited as an undervalued cryptocurrency given its extensive capabilities, Cardano has thus far failed to meaningfully breach the $1 threshold.
For a layer-1 blockchain that purportedly offers one of the most well-designed proof-of-stake mechanisms and claims over $1 billion total value locked, a sub-$0.40 valuation continues to spark debate around current prices reflecting true fundamental value.
Cardano seems lucrative near the $0.38 mark
Yet for investors accumulating ADA anywhere near the $0.38 mark, the risk-reward scenario looks increasingly positive. According to Martinez’s analysis, any break below the lower boundary of this support zone could result in a further drop to around $0.34. However, with buy-side volume evidently piling in around current levels, the downside appears limited in the short term.
Beyond positive on-chain signals, Cardano’s underlying ecosystem continues to expand through the onboarding of new protocols spanning decentralized finance, non-fungible tokens, and more, all contributing to a sticky demand dynamic for ADA.
While further volatility can be expected from the asset embroiled in the latest crypto market turbulence, analysts will be closely monitoring price action to see if a more decisive breakout takes form.
