Cardano [ADA] has been on a steady decline, and concerns are mounting as the token nears a critical make‐or‐break level at $0.318.
At the time of writing, ADA declined by 7.70% over the past 24 hours and was trading at $0.3251. Despite the price decline, market participation during the same period increased significantly, with trading volume surging 72% to $831 million.
This spike indicates that traders and investors remain actively engaged with ADA’s current market trend.
ADA’s price action and key levels
AMBCrypto’s technical analysis reveals that ADA’s current level of $0.3251 represents a make-or-break zone.
According to the weekly chart, the asset has been holding this level since November 2023, and since then, ADA’s price has witnessed a strong reversal more than five times.
Meanwhile, price action and historical performance suggest that if ADA sustains its key level and holds above $0.315, it could witness a price reversal similar to past moves.
However, if the asset falls below this key support and closes a daily candle under the $0.315 level, it could face another 25% price drop and potentially decline toward the $0.2329 level in the future.
At press time, the Average Directional Index (ADX), which measures trend strength, stood at 27.05, above the key threshold of 25, indicating that ADA is currently in a strong trend.
However, the Money Flow Index (MFI) was at 32.17, suggesting weakening buying pressure and indicating that the asset is approaching oversold territory, which could increase the chances of a short-term bounce if demand picks up.
On-chain suggests an ideal buying opportunity for ADA
Despite bearish sentiment and ADA’s ongoing price decline, buyers have shown aggressive activity in the market.
Data from the on‐chain analytics platform CryptoQuant reveals that Spot Taker CVD has stayed positive for several days. This indicates that market participants continue to place buy orders directly at the market price, signaling persistent demand even amid the downturn.
This divergence between falling price and strong taker buying suggests underlying accumulation and hints at potential support-driven demand near current levels.
Adding to this, another on-chain tool, Santiment, further reinforces the presence of buying activity. According to the data, whales holding between 100,000 and 100 million ADA have accumulated 454.7 million tokens worth approximately $161 million over the past two weeks.
At the same time, the data reveals that wallets holding at least 100 ADA have dumped over 22,000 ADA during the past three weeks, suggesting rising fear among retail investors amid ongoing market uncertainty.
Traders following the current trend
From the derivatives side, it appears that intraday traders are closely following the current trend.
According to CoinGlass’s ADA Exchange Liquidation Map, traders have shown strong interest around the $0.319 level on the downside and the $0.341 level on the upside, at press time.
At these levels, they have built approximately $2.47 million worth of long-leveraged positions and $10 million worth of short-leveraged positions, highlighting that traders’ short-term sentiment remains active and trend-driven.
Final Thoughts
- After a 7.70% decline, Cardano (ADA) has reached a make-or-break zone. Price action suggests that further downside could be possible if ADA falls below the $0.315 level.
- On-chain data indicates aggressive buying activity among traders and investors, suggesting a potential buying opportunity despite the broader weakness.
