Cardano (ADA) price has reached a pivotal weekly support level, prompting potential buyer intervention to halt further depreciation. After an extended period of continuous declines, ADA touched the weekly SMA 50 at $0.433, a level that has significantly supported the price since late October 2023.
What Could Happen to ADA Next?
Cryptocurrencies ended the previous week on a downturn, with the market, led by Bitcoin, facing a drop on Friday following the release of May’s employment data by the government, which revealed unexpectedly high job gains of 272,000. At the time of writing, ADA increased by 0.54% in the past 24 hours, reaching $0.439, slightly above the previous low of $0.432.
The current price action suggests that ADA is maintaining significant support, buoyed by addresses holding approximately 3.47 billion tokens. Data from IntoTheBlock indicates that 3.47 billion ADA were purchased by 350,940 addresses at an average price of $0.3944, within the range of $0.371 to $0.431. If ADA remains above this critical support level and gains momentum, a new bullish trend could emerge.
Will ADA Overcome Resistance?
Cardano is currently navigating a symmetrical triangle formation, reflecting a struggle between bulls and bears. Investors managed to push ADA’s price above the daily SMA 50 at $0.461 on June 7, with ADA briefly peaking at $0.49 before encountering resistance and retreating.
ADA is now attempting to recover from a four-day losing streak. The extent of the bulls’ influence on the recent price recovery remains uncertain. Should buyers surpass the $0.49 barrier, ADA could climb to $0.62, with minor resistance at $0.57 expected to be overcome. Conversely, a drop below the daily SMA 50 at $0.461 could signal profit-taking by bulls and potentially trap ADA’s price within the triangle for a prolonged period.
Key Takeaways for Investors
– ADA’s current support level is crucial for preventing further declines.
– Maintaining the SMA 50 support level may signal a bullish trend.
– Surpassing the $0.49 resistance could propel ADA to $0.62.
– Falling below the daily SMA 50 might trap ADA within its current trading range.
The coming days will be critical for Cardano’s price trajectory as investors closely watch these key levels and market movements.