The world’s eighth-largest cryptocurrency by market cap – Cardano (ADA) – has been facing some volatility this week. After making an 18% surge to $0.67 earlier this week, Cardano is facing a major price retracement as of now.

Cardano (ADA) Price Drops 5%

Renowned cryptocurrency analyst Ali Martinez has identified a descending triangle formation on the lower time frames for Cardano (ADA). According to Martinez, a sustained close above the critical level of $0.638 could serve as a catalyst for a bullish breakout, potentially pushing ADA’s price toward the $0.700 mark.

Investors and traders are advised to closely monitor the $0.613 support level, as any signs of weakness at this crucial point could impact the bullish momentum of ADA. Martinez’s analysis provides valuable insights for market participants, emphasizing key levels to watch for potential price movements in Cardano as the cryptocurrency navigates its current technical pattern. ADA enthusiasts and investors are eagerly awaiting further developments in the market as they assess potential opportunities and risks.

ADA Demand Zone and On-Chain Metrics

Based on insights from IntoTheBlock, Cardano (ADA) is currently trading within a demand zone, with its price at $0.6356 falling within the range of $0.6199 to $0.6822. The data also indicates that once Cardano experiences an upward surge beyond the upper boundary of this range, it is likely to encounter limited potential supply until it reaches the subsequent price band marked by the $0.8457 hurdle.

Cardano, a cryptocurrency considered an alternative to Ethereum, has experienced a robust rally of almost 40% in the last month. On-chain metrics, such as Transaction Volume and Active Addresses, provide additional support for the upward momentum observed in ADA. The transaction volume of ADA has shown an upward trend over the past month, aligning with the price movements of Cardano.

The number of Active Addresses in the Cardano network serves as an indicator of the demand for the altcoin among market participants and underscores its significance among traders. Analyzing the below chart provided by Santiment also reveals a consistent correlation between the increase in Active Addresses and the upward trajectory of Cardano’s price. This confluence of on-chain metrics suggests a positive market sentiment and heightened interest in Cardano within the cryptocurrency community.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.