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Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, is facing a decisive moment as 2 billion ADA are at play depending on the price action.
The ADA price rebounded from lows of $0.471 on Jan. 19 and sustained this recovery at press time. The entire crypto market corrected from its peak when Bitcoin spot ETFs were approved, and ADA seemed to mirror the same trend.
In line with the market recovery after the sharp plunge, the ADA price currently trades in green, up 1.16% in the last 24 hours to $0.518.
Tomiwabold OlajideAccording to IntoTheBlock's Global In/Out of the Money, Cardano is in a critical demand zone that ranges from $0.489 to $0.526, where 192,030 addresses bought 2 billion ADA at an average price of $0.509. This zone acts as a strong support level, as many investors would try to defend their positions and prevent further losses.
However, if this zone fails to hold, Cardano's price is likely to find the next strong support in the range between $0.392 and $0.487, where 439,620 addresses purchased 3.02 billion ADA.
On the upside, Cardano faces a significant supply barrier between $0.526 and $0.562, where 136,470 addresses hold 2.04 billion ADA. This zone coincides with the daily MA 50, as seen on the daily chart. Therefore, a clear break above this level is needed to confirm a bullish trend reversal and open the door for further gains.
Cardano's price performance largely depends on the overall sentiment and direction of the cryptocurrency market, which has been showing signs of recovery since the sharp declines after the ETF approval.
Cardano's fundamentals also remain strong, with 2024 ushering in new releases and upgrades, as reported.
That said, Cardano could potentially regain its momentum, although this possibility remains unknown. However, the price action in the short term will depend on the key levels mentioned above, as well as the overall market sentiment and volatility.
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