Cardano (ADA)’s Key Demand Walls to Prevent a Drop Below $0.65

Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, remains below the $1 psychological threshold. After slipping beneath this level in mid-December, the asset has continued to face bearish pressure, dropping to an intra-month low of $0.7620.

This ongoing correction marks the third consecutive week of decline for Cardano (ADA), leaving traders closely monitoring critical support levels that could mitigate further losses.

Identifying Key Demand Zones

Insights from IntoTheBlock highlight significant demand walls that could provide crucial support for Cardano amid its continued price decline. One of the most critical support zones lies between $0.8366 and $0.6683.

Within this range, approximately 223,070 wallets have accumulated 1.97 billion ADA. This demand zone could serve as a vital buffer against additional bearish momentum, potentially preventing the asset from plunging below $0.65.

Additionally, a second support zone is identified between $0.5353 and $0.6683. At this level, 405,660 addresses acquired 5.39 billion ADA at an average price of $0.5973. This deeper demand wall could act as a secondary safety net in the event the upper support zone fails to hold.

Historical Importance of the $0.68–$0.77 Range

Further analysis points to the historical significance of the price range between $0.68 and $0.77. Market data shows that this zone has been a critical level for Cardano on multiple occasions.

Notably, the region provided short-term support during Cardano’s previous downward corrections, including the December 20 drop when the asset reached an intraday low of $0.7620.

Beyond recent price action, the $0.68–$0.77 range played a pivotal role during the 2022 bear market, acting as a support level before eventually flipping to resistance. This resistance was observed again in December 2023 and March, when ADA faced rejections in its upward attempts, leading to further corrections.

Conversely, when ADA managed to reclaim this zone in November, it triggered a bullish uptrend, confirming its importance as a support level in the current market cycle.

Potential Consequences of Support Loss

If Cardano fails to maintain support above the $0.5973–$0.7556 range, the next significant demand wall lies much lower, near $0.46. This level served as a key support zone during the January correction, with 432,150 wallets accumulating 3.5 billion ADA at an average price of $0.4852. A break below the current demand zone could result in a substantial 46% drop toward this lower support, compounding the ongoing losses.

Current Price Action

At the time of writing, ADA is trading at $0.8737, reflecting a modest 1.15% increase over the past 24 hours. Despite this minor uptick, the asset remains under pressure from prevailing bearish market conditions. Traders and investors will closely monitor the aforementioned support levels to assess the potential for stabilization or further declines in the coming weeks.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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