Cardano nears critical $0.3172 support: Will ADA bulls step in?

• Cardano was trading near a critical support level at $0.3172.
• Metrics signaled a growing market interest.

Cardano’s [ADA] price has seen a price dip of 1.47% in the last 24 hours, with a larger decline of 11.04% over the past week.

The press time market capitalization stood at $11.7 billion, having dipped by 1.40% according to CoinMarketCap. 

At press time, trading volume surged by 29.46% to $320.634 million, indicating a spiked market activity amid the price drop.

Key support level is still solid

At press time, Cardano was trading near a significant support level around $0.3172. This level has held significance in the past, acting as a potential bounce zone.

However, ADA is trading below a descending trendline, which may suggest further downward pressure if this support level fails.

A break below this support could lead to a bearish continuation, potentially targeting the next support at $0.2774.

Source: TradingView

Whales on the move

Large transactions have surged by 8.56% in the last 24 hours, indicating that large investors are positioning themselves for potential price movement.

This surge in whale activity can have a stabilizing effect on the market, particularly if accumulation continues at lower price levels.

Source: IntoTheBlock

Additionally, the 109.41% spike in number of active addresses suggested that Cardano was gaining significant attention, which could boost speculative interest and trading activity.

Source: IntoTheBlock

Cardano liquidation risks

At press time, there was a notable liquidation pool of around 990k worth of Cardano, highlighting a potential risk of increased sell-offs if prices drop further.

Liquidation heatmap data from Coinglass provided a bearish market bias and may act as a bearish magnet to pool the price to the $0.3169 level before a possible bullish movement.

Source: Coinglass

Technical indicators hinted at a potential market reversal

From a technical angle, the Cardano Stochastic Relative Stochastic Index indicated an oversold zone at press time, with a potential bullish crossover on the horizon.

Read Cardano’s [ADA] Price Prediction 2024–2025

This may signal a possible price recovery if buyers step in to capitalize on the oversold conditions. 

However, the broader trend remains bearish unless ADA makes a significant bullish movement above the current support level at $0.3172 to the next in line resistance levels.