Cardano's Crucial Trading Range: Implications for Short-Term Price Movement

According to U.Today, Cardano (ADA), currently the 10th-largest cryptocurrency by market cap, is trading within a significant price range that could impact its short-term price movement. At the time of writing, ADA was down 0.82% to $0.382, having dropped to as low as $0.375 earlier in the day. This mirrors a broader market sell-off, with Bitcoin slumping to a more than one-month low, and signs of fatigue in the crypto market rally due to a lack of new market catalysts. On June 18, ADA fell to a low of $0.366 and is still down 8.76% weekly. Data from IntoTheBlock reveals that a significant 2.35 billion ADA were acquired by 159,400 addresses within Cardano's current range of $0.38 to $0.394, averaging out to $0.387 per ADA. This accumulation indicates a key support zone for the ADA price. The current trading range, where substantial buying activity has taken place, highlights a critical support level. If the Cardano price falls further, market observers and ADA holders may look to the next expected support zone, which is between $0.373 and $0.38. This range could act as a safety net for the cryptocurrency, potentially limiting further declines. On the other hand, if ADA's price rebounds from its current levels, it may encounter its next significant resistance between $0.394 and $0.437. Within this upper range, 2.64 billion ADA were purchased by 206,880 addresses, with an average price of $0.414. This area could pose a significant challenge for upward momentum, requiring strong buying pressure to break through. Current on-chain data suggests that the ADA price might be at a critical juncture. The large volume of ADA bought at the highlighted price levels indicates significant support, but it might also suggest potential resistance that could slow down bullish momentum. Traders should monitor these critical price points for indications of ADA's next big move as well as broader market trends and investor sentiment.