The Cardano (ADA) cryptocurrency has established a robust support level around the $0.35 mark, according to data from IntoTheBlock's (ITB) indicator. This support level could serve as a consolidation point for the digital asset in the foreseeable future. Over the past 13 days, ADA has consistently trended upward, demonstrating its potential for further growth.
IntoTheBlock's ITB indicator, a sophisticated metric used to analyze the performance of cryptocurrencies, helps traders and investors make informed decisions by providing insights into the average cost at which tokens were purchased.
The indicator compares this average cost with the current price of the asset to determine whether an address is "In the Money" or "Out of the Money." In essence, if the current price is greater than the average cost, the address is considered profitable. On the other hand, if the current price is lower than the average cost, the address is deemed unprofitable. The ITB indicator focuses on clusters with a variation of +/- 15%.
Based on the ITB indicator's analysis, the $0.35 threshold for Cardano has emerged as a significant support level, showing a potential consolidation phase for the asset. The next important level is the $0.37 resistance, with 3.6 billion of selling volume. The biggest support level for the asset is located at the $0.3 threshold.
The steady upward trajectory of Cardano over the past two weeks has also bolstered confidence in the cryptocurrency. As ADA continues to gain traction and its ecosystem expands, the strong support at the $0.35 level could serve as a crucial foundation for the asset's long-term stability and success.
At press time, Cardano is trading at $0.36, with a 3.2% price decrease in the last 24 hours.