On January 3rd, Cardano (ADA) experienced a significant drop, coinciding with Bitcoin‘s (BTC) fall from $45.8k to $40.8k. Despite short-term losses, ADA buyers remained undeterred by bearish trends, trading near the demand zone. ADA has shown commendable performance since 2023 and is expected to continue this trend into 2024. Since December 14th, ADA has been trading within a certain range, which became evident a few days later, moving from $0.51 to $0.68. The mid-range level of $0.595 has acted as strong support over the last two weeks.
After Bitcoin’s significant losses dragged the market down, ADA’s support level was breached on January 3rd. This move highlighted the importance of the $0.535 4-hour rising order block for Cardano buyers. At the time of writing, the H12 RSI was below the neutral 50, reflecting the bearish market momentum.
On-chain data for altcoins showed a gradual increase in OBV since the beginning of the year, but bulls were not overwhelmingly strong. A significant spike in age consumption on December 27th indicated large movements of dormant tokens and selling by holders. Development activity was high in recent months, though it decreased during the holiday season, with expectations to return to normal levels soon. Social volume was also notably high.
Considering these factors, ADA may be poised for another upward move. Despite the substantial drop on January 3rd, Cardano has shown resilience at key support levels. Technical analysis and development activities suggest ADA is holding strong in the demand zone, with potential for a positive move.
