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Cardano's price has fluctuated between $0.529 and $0.611 since dropping to a low of $0.51 on June 22.
As Cardano consolidates, traders are keeping an eye on where the ADA price will go next, with the market eyeing a key level that could serve as a launchpad or a trapdoor depending on how market participants respond in the coming days.
According to on-chain analyst Ali, a decline to $0.54 could provide an excellent entry point for traders keeping a close eye on Cardano. This level is regarded as a possible accumulation zone where buy-side pressure could rise if tested.
"A dip to $0.54 could offer a prime entry point for Cardano ADA," Ali stated in a recent post on X, highlighting the technical significance of the support.
In recent weeks, the $0.54 level has served as a strong demand level, protecting ADA against further falls. Cardano rebounded sharply from this key level on July 2, reaching a high of $0.611 on July 3 before declining.
Cardano price action
At the time of writing, ADA was up 2.19% in the last 24 hours to $0.585 as the crypto market slightly rose in early Sunday morning, with $71 million in shorts being liquidated.
However, the broader crypto market is still reacting to macroeconomic uncertainties, and Bitcoin's recent lackluster performance has put more pressure on altcoins such as ADA.
If the price falls and breaks below $0.54, ADA could tumble to the crucial support at $0.50. Buyers are likely to defend the $0.50 level with all their might, as a break below it would complete a descending triangle pattern. That might signal the start of a decline to $0.40.
On the upside, if buyers push the price above $0.61, ADA could reach the 50-day SMA at $0.67 ahead of the daily SMA 200 at $0.758. A trend change will be signaled after buyers drive beyond these key levels.
Vladislav Sopov
U.Today Editorial Team