Cardano is currently at a key price after weeks of extreme volatility. Following a dramatic series of price swings—first a 27% surge, then a 20% retrace, then a 10% rise, and now a 7% dip to $0.34—Cardano finds itself at one of its most critical support levels. It is important for the bulls to hold this level in order to avoid further losses and maintain momentum.
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Coinglass market data indicates that ADA could be entering a period of consolidation. This phase is often the precursor to a large price change. This level is closely watched by investors and traders, since it can determine if Cardano will have a breakout bullish or experience a more severe correction.
The entire cryptocurrency market is in an anticipation state. ADA’s The next price movement will signal its future trend. This consolidation phase will set the tone of Cardano in the coming week as sentiment is still mixed.
Cardano’s Funding rate indicates market consolidation
Cardano is indicating that it may be entering a phase of consolidation. Investors are evaluating their next steps at this crucial time. Recently, on-chain information shows that there was a spike in big transactions and then a stabilization. It is possible the market will cool off after several weeks of high volatility. The stabilization of the market could lead to a more even price as ADA remains near a crucial support level.
Coinglass data The consolidation story is reinforced. The ADA OI Weighted Funding rate is still positive despite the decline. The declining funding rate is positive, which indicates that the demand for ADA has slowed down but not enough to cause the market to expect heavy short selling.
Crypto markets tend to consolidate when the funding rate dips but remains positive. They do not prepare themselves for a rapid decline. It is clear that ADA has slowed its upward trend, but there are still no overwhelming negative sentiments.
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If ADA is able to maintain above the current level during this consolidation period, then it will signal a healthy price movement. Bulls must be able to hold these levels and potentially lead to an extended rally. Investors should monitor these indicators as the market tests ADA resilience.
ADA testing Crucial Support
Cardano is trading at $0.34, after it failed to regain two crucial levels. The 4-hour moving average at $0.356 (MA), and the 200 exponential movement average at $0.359. The ADA must regain momentum to be bullish, so these indicators will not allow it to do that.
ADA has managed to hold above a critical support level of $0.34. The price may face a major retracement if this support level is not maintained. Lower demand levels of $0.32 or $0.30 could be tested. It is important to maintain the market’s current sentiment.
If ADA were to reclaim both the 4-hour 200 MA (moving average) and 200 EMA (moving average), breaking above $0.36 then it would set the stage for a rally up towards resistance levels higher. Around $0.41 is the next important supply zone, which could be a challenge for further bullish momentum.
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In the coming days, ADA will consolidate and plan its next moves. These key technical levels are being closely monitored by investors to determine the direction of price movement in the near-term.
Featured picture from Dall E, chart by TradingView
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Source: www.newsbtc.com
