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- Cardano was trading close to the critical support level of $0.3172.
- Indicators point to growing market interest.
Cardano [ADA] Prices have fallen 1.47% in the past 24 hours and an even bigger drop of 11.04% in the past week.
At the time of publication, the company's market capitalization was $11.7 billion, down 1.40%. CoinMarketCap.
At the time of writing, trading volume had surged by 29.46% to $320.634 million, suggesting increased market activity amid falling prices.
Key support levels remain strong
At the time of writing, Cardano was trading close to the critical support level near $0.3172, a level that has been significant in the past and has acted as a potential bounce zone.
However, ADA is trading below the descending trendline, which could lead to further downward pressure if this support level fails.
A breakdown below this support will likely result in the bearish trend continuing and targeting the next support at $0.2774.
Source: TradingView
Migrating Whales
Large volumes have surged 8.56% in the past 24 hours, indicating that large investors are bracing for a potential price move.
A surge in whale activity could bring stability to the market, especially if accumulation at low price levels continues.
Source: IntoTheBlock
Additionally, the 109.41% surge in the number of active addresses suggests that Cardano is attracting significant attention, which is likely to spur more speculative interest and trading activity.
Source: IntoTheBlock
Cardano Liquidation Risk
At the time of writing, Cardano stands out with a liquidation pool worth around 990,000, highlighting the potential risk of increased selling if the price falls further.
Liquidation heatmap data from Coinglass indicates a bearish market bias, which could act as a bearish magnet to rally prices towards the $0.3169 level before a bullish move occurs.
Source: Coinglass
Technical indicators hinted at a possible market reversal
From a technical perspective, the Cardano Stochastic Relative Stochastic Index is indicating an oversold zone at the time of writing, indicating the possibility of a bullish crossover in the near future.
Cardano [ADA] Price forecast 2024-2025
This could be an indication that prices may recover if buyers step in to take advantage of the oversold situation.
However, unless ADA can make a significant bullish move above the current support level of $0.3172 and towards the next line resistance level, the overall trend will remain bearish.
