Cardano's ADA token saw a 3.14% decline in price over the past 24 hours, falling from $0.3273 down to $0.3168. This drop brings ADA back towards the lower end of the trading range it has been stuck in for much of July.
Examining Volume and Market Capitalization
Despite the single-day decline, Cardano maintains a sizable market capitalization of $11.07 billion. This makes ADA the #8 largest cryptocurrency by market value.
Over the past 24 hours, trading volume amounted to $274 million worth of ADA changing hands. This level of volume is lower than the past month's average, indicating waning interest during yesterday's sell-off.
Short-Term Momentum Turning Bearish
Cardano's price trend has turned bearish in the last week, with ADA down 13.03% over that timeframe. The token has failed to gain upside momentum since reaching 2022 highs in late June.
The past day and hour stats also look weak, with ADA down 3.14% and 0.22% respectively. This suggests the path of least resistance is to the downside currently.
But Longer-Term Outlook Still Bullish
Despite recent weakness, Cardano's longer-term momentum remains bullish. Over the past month, ADA is up 13.29%, outpacing many major cryptocurrencies.
The token is also up substantially from its 2022 lows, indicating the broader trend is still to the upside. As long as Cardano holds support above $0.30, the bull case looks intact.
Predictions and Key Levels to Watch
My prediction is that Cardano will stabilize and find support near its current price. The $0.30 - $0.32 zone should attract buyers, given its alignment with ADA's 50-day moving average.
However, a break below $0.30 could open the door for a steeper correction towards the 200-day MA near $0.25. I expect $0.30 will hold, allowing the uptrend to resume towards a retest of June's highs.
What key support levels should Cardano traders watch in the near-term?
The most immediate support zone for Cardano is the current $0.30 - $0.32 area. This aligns with the 50-day MA, which should bring in buyers.
Below that, the $0.28 - $0.25 region is key. It contains the 200-day MA, along with the 0.236 Fibonacci retracement of the 2022 uptrend. This area must hold to maintain the bull case.
On the upside, resistance is seen at $0.34, then $0.37 which marks the 2022 descending trendline. A break above $0.37 would confirm a bullish breakout for Cardano.
Can Cardano reclaim its all-time highs in the current market cycle?
If crypto bullish sentiment persists through 2023, Cardano could potentially reclaim its all-time high price of around $3.10 in the current cycle.
For Cardano to revisit its former ATH, a few key developments must occur:
- The overall crypto market cap must continue expanding, providing a tailwind for major altcoins like ADA.
- Positive catalysts around Cardano adoption and real-world usage need to materialize.
- Bitcoin likely needs to move past its own ATH, since large caps tend to drive interest in riskier altcoins.
Given ADA's strong gains off its 2022 lows already, it's feasible it could reach new highs above $3 in the current bull market cycle if the conditions align. However, continued bearish macro conditions would make hitting new highs difficult over the next 6-12 months.