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- The price of Cardano rose 14% in 24 hours, driven by increased trading activity and daily volume exceeding $1 billion.
- Key support levels at $0.8366 and $0.68 may prevent further declines.
Cardano (ADA) gained momentum, almost went up 14% in 24 hours amid increased trading activity. This increase pushed trading volume to $1.45 billion, reflecting increased market interest. However, ADA remains below the $1 threshold, trading at $0.9592, and he faces critical levels of support that could dictate his next move.
Price movements are centered around critical demand zones. According to IntoTheBlock, the buy interest levels are $0.8366 and $0.6683. About 223,070 wallets gathered in this range to buy 1.97 billion ADA, placing it in a high demand zone. This area could serve as a support level to prevent further declines, giving the bulls a chance to reverse the trend.
Another important level is the range between $0.68 and $0.77. Historically, this zone has acted as both a support level and a launching pad for short-term uptrends.
However, if the price breaks below the broad range of $0.5973 to $0.7556, a big downside could be in store. Over 405,660 addresses hold 5.39 billion ADAs in this range, which further supports its importance in the market.
If this level falls, Cardano could slide up to 46% and retest the $0.46 support level. This threshold was the point of recovery in previous withdrawals, at which 432,150 wallets held 3.5 billion ADA. Such a decline would most likely lead to significant losses in the market area.
Historical context and accumulation of whales
Historical price movements show why these demand zones are significant. The range from $0.5973 to $0.7556 was both a support and resistance level at various times. For example, this zone exerted downward pressure in December 2023 and March 2024, resulting in a rejection and price correction. On the other hand, it offered support in November 2024, thus emphasizing the price impact of ADA.
Technical analysis shows signs of a reversal to the upside. On the chart, the MACD line has crossed the signal line from below, pointing up and showing upward pressure. The moving average also supports a positive trend, which makes it possible to expect a price recovery.
This comes in light of increasing investor interest in Cardano, as demonstrated by whale activity. In the last two days, whales have bought more than 20 million ADA. This increase correlates with increased trading activity, which rose to $917 million.
These high levels of participation show market interest and increase the possibility of price increases. For further upside, the price needs to break the $0.87 level, with support at $0.84. A breakout of the resistance level could pave the way for further upside gains.
Long-term outlook: Potential for new highs
Well-known crypto analyst Michaël van de Poppe also gave an optimistic forecast regarding the price trend of ADA. Van de Poppe highlights the current correction after the strong rise in 2024 as an opportunity for a bullish reversal.
He identified the ideal time for long-term investors to enter the market at the $0.7460 level. Based on historical price action and Elliott wave theory, he expects ADA to reach its new all-time high by 2025 or 2026.
