- 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.
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