Journalist
Posted:
- ADA was down by more than 4% in the last 24 hours, but its volume increased.Â
- If ADA’s price is to turn bullish, it has to cross a resistance level near $0.64.
Cardano [ADA] witnessed a massive surge in its price over the last week as its value rallied by 30%. However, things changed in the last 24 hours as its price registered a drop.
Is this the end of ADA’s bull rally, or should investors expect a trend reversal soon?
Cardano is testing a support level
After a comfortable week-long rally, ADA witnessed a price correction. According to CoinMarketCap, Cardano was down by more than 4% over the last day.
At the time of writing, it was trading at $0.5576 with a market capitalization of over $14.6 billion, making it the eighth-largest crypto.
Though at first things might look bearish, things can soon turn in the token’s favor. Relt Capital, a popular X (formerly Twitter) handle that posts crypto analyses, pointed out that ADA was sitting right on top of a major support level of $0.51.
Cardano is successfully retesting the orange level as support
So far, so good#ADA #Crypto #Cardano https://t.co/mCVMapZuNL pic.twitter.com/FvD4U2yFZ9
— Rekt Capital (@rektcapital) December 12, 2023
Once ADA tests that level, the possibility of the coin’s value surging further seems likely. As of now, though, ADA’s popularity witnessed a drop, as evidenced by its Social Dominance.
Its Weighted Sentiment also saw a plummet, suggesting that negative sentiment dominated the market.
Nonetheless, ADA remained in demand in the Futures market, as evidenced by its green Binance Funding Rate. It was also interesting to see a massive surge in the blockchain’s Development Activity.
This indicated that the developers made more efforts last week to improve the network.
Source: Santiment
ADA needs to cross these hurdlesÂ
To restart a bull rally, ADA has quite a few hurdles to cross. Inasmuch, AMBCrypto took a look at Cardano’s liquidation heatmap to see when ADA faced problems.
Notably, the token’s liquidation surged sharply when its price touched the $0.56 mark, after which its price sank.
If the token goes above that level, ADA will witness a resistance level at the $0.64 mark, as the token failed to go above that range during the last week.
Source: Hyblock Capital
AMBCrypto then took a look at other metrics to see whether ADA’s price could gain bullish momentum in the near term. As per our analysis, ADA’s MVRV ratio registered a drop after spiking on the 10th of December.Â
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Its velocity also started to decline, meaning that ADA was used in transactions less often within a set time frame. However, a positive metric was ADA’s Open Interest, which dropped.
A decline in the metric generally hints at a trend reversal, giving hope for a price uptick soon.
Source: Santiment