ADAs Struggles Continue: Will $1 Hold for Cardano?
- Cardano (ADA) breaks $1.20 support, leaving investors concerned as 64.68% are in the red, raising selling pressure.
- ADA fluctuates near $1.01 with neutral market sentiment, and $1.00 is a key support level to watch for a potential rebound.
- Despite the price decline, Cardanos network activity rises with 1.24M active addresses, showing continued user engagement.
Over the past few weeks, the cryptocurrency market has been volatile and Cardano (ADA) is not an exception. Currently, the sixth largest cryptocurrency by market capitalization has fallen below the vital $1.20 level at which 93,000 addresses bought around 2.54 billion Cardano tokens. The recent price decline has raised some questions on the future of Cardano.
ADA is currently priced at approximately $1.02 which indicates a stagnation of the assets movement. The following price charts illustrate a gradual downfall of Cardano with the support level of $1.20 being broken. This support accumulated through the process of investor accumulation has now been breached and the next level to watch is the $1.00 level. If Cardano is able to hold this new support zone it could prevent the price from dropping any lower.
ADA Support Break
Looking at the technical analysis at this stage, the market sentiment is neither bullish nor bearish the RSI is at the middle range which is neutral. This means there is no clear direction of buying or selling pressure hence making Cardano fluctuate within the short term period.
Source: TradingView
The break of $1.20 support level has led to discomfort among ADA holders especially those who bought in at this level. According to the In/Out of the Money Around Price chart, 64.68% of Cardano holders are in the red, while only 34.44% are in profit. This difference in the investors attitude may result in more selling pressure, which will put more pressure on the price.
Rebound Potential for ADA
While price has been an issue, the activity of the Cardano network has been on the rise. Within the last month alone, the platform registered around 1.24 million active addresses of users, which point towards the fact that users are still interactive with the platform even if price fluctuations are taking place.
Source: Santiment
The $1.00 level is going to be very important for ADA. If the cryptocurrency remains within this range it will provide a base for the potential of a rebound. The success of Cardano will be hinged on the ability to keep its community and also overcome the many risks that are associated with the crypto market. ADA may not be able to bounce back if the market situation remains unfavorable in the general market.
Read more: https://www.tronweekly.com/adas-struggles-continue-will-1-hold-for-cardano/
Text source: TronWeekly
