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Cardano: 3.47 Billion ADA Backs Up as Price Touches Weekly Support

Sun, 9/06/2024 – 15:49

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The Cardano (ADA) price has touched a key weekly support level, a critical point where buyers might step in to prevent further declines.

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Following weeks of steady declines, ADA touched the weekly SMA 50 at $0.433. This level has notably held up the ADA price since late October 2023, hence ADA touching here remains significant.

Cryptocurrencies closed the prior week in the red as the market led by Bitcoin moved lower on Friday after the government’s employment data for May came in far higher than predicted, with 272,000 jobs gained.

At the time of writing, ADA was up 0.54% in the last 24 hours to $0.439, slightly higher from the prior day’s low of $0.432. The current price action suggests that ADA sits on a major support where a significant amount of ADA, nearly 3.47 billion coins, are being held by a substantial number of addresses.

IntoTheBlock
Global In/Out of the Money, Courtesy: IntoTheBlock

According to IntoTheBlock data, 3.47 billion ADA were bought by 350,940 addresses in the range of $0.371 and $0.431 at an average price of $0.3944.

If ADA manages to hold above this support level, including its weekly SMA 50 support, and gains upward momentum, it might herald the start of a new bullish trend. Traders and analysts will closely observe Cardano’s price action in the coming days to determine its next moves.

What’s next for ADA price?

Cardano currently trades in a symmetrical triangle pattern, indicating a battle between bulls and bears. Traders managed 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 encountering resistance and the price began to fall.

TradingView
ADA/USD Daily Chart, Courtesy: TradingView

ADA is now attempting to recover from a four-day losing streak. It remains to be seen how far bulls will take the recent price rebound. If buyers overcome 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.

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In contrast, if Cardano falls below the daily SMA 50 at $0.461, it may imply that bulls are taking gains, keeping the ADA price trapped inside the triangle for some time.

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