Cardano price continues to move below the $1 mark and is currently trading at $0.8525 with a gain of 1.5% in the last 24 hours.
However, this slight bounce in price represents a mixed sentiment for the cryptocurrency, as key support levels are headed for the downside.
The current focus is on critical demand zones that can set the stage for the next asset move.
Cardano Price Key Support Zones: $0.77 and $0.68
Data from IntoTheBlock reveals a high level of support between $0.8366 and $0.6683. In that span, 223,070 wallets collectively bought 1.97 billion ADA.
This zone is the first major obstacle to demand for Cardano. Bulls can use this area to prevent the price from falling further.
Another support level is between $0.68 and $0.77. History shows that this level has often been a key support for Cardano.
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On several occasions, it has served as a support against the fall and as a platform for short-term growth.
Nevertheless, a break of the support area at $0.5973-$0.7556 will lead to a sharp decline in the price. More than 405,660 addresses bought 5.39 billion ADA at an average price of $0.5973, further supporting this level.
If this area breaks, Cardano could fall as much as 46%, with the next support level at $0.46. The $0.46 support level seen in previous pullbacks marks the retracement point where 432,150 addresses gained 3.5 billion ADA.
This level has acted as a support in the past, however, if the value were to reach this level, then there would be a big loss.
Historical context of demand zones and technical analysis
Furthermore, it is clear why these demand zones are important by looking at Cardano’s price history.
The $0.5973-$0.7556 level was the main level for both support and resistance levels in the given time frame.
This zone produced negative pressure in December 2023 and March 2024, which resulted in rejection and price correction.
On the other hand, the dynamics of the pair made it a temporary support level in November 2024, which confirmed the role of the level in price dynamics.
Also, the moving average is giving a positive signal for a bullish opening as the MACD line crosses over the signal line on the 4-hour chart suggesting that the momentum may shift to the upside.
At the time of writing, Cardano (ADA/USD) is trading around $0.8595 after pulling back from recent lows.
This further bullish potential can be seen if the price breaks the resistance level of $0.87, however support at $0.84 is necessary for price stability.
Also, Cardano whales continued to accumulate more and bought more than 20 million ADA within two days.
This increase in whale activity is a good sign and shows that more and more investors are starting to believe in ADA’s abilities.
The increase in trading activity to $917 million indicates a high level of market interest, which means that there is a high probability that Cardano will increase in price in the near future.
