- ADA was down by more than 4% in the last 24 hours, but its volume increased.
- 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 hurdles
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.
Is your portfolio green? Check out the ADA Profit Calculator
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
