Cardano (ADA), a popular cryptocurrency, recently encountered a rejection at the $1.3 resistance level, sparking volatility and a retracement to the $0.75 support zone. This key zone coincides with a significant prior yearly high, highlighting strong demand and buyer interest. Let’s explore what lies ahead for ADA and how it impacts Cardano price prediction for 2024.
Key Levels to Watch: $0.75 Support and $1.3 Resistance
Cardano’s current price action is trapped between $0.75 and $1.3, forming a critical range. The $0.75 support zone, strengthened by Fibonacci retracement levels of 0.5 ($0.82) and 0.618 ($0.7), has acted as a formidable barrier against selling pressure.
If ADA breaks above $1.3, it could confirm the start of a bullish trend.
If ADA falls below $0.75, a liquidation event could push the price lower, potentially testing $0.5.
Descending Wedge Formation: A Bullish Signal?
On the 4-hour chart, ADA is forming a descending wedge—a pattern typically signaling a potential bullish breakout.
The upper boundary of the wedge lies near $1.3, a crucial resistance.
ADA is hovering near the wedge’s lower boundary, close to the $0.75 zone, where buyer activity is increasing.
If ADA breaks out of this wedge, Cardano price predictions suggest an upward move toward $1.3 or beyond.
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On-Chain Metrics: Cardano Whales Show Confidence
A key highlight for ADA’s price is the growing confidence among long-term holders (whales).
As per IntoTheBlock, ADA holders with tokens for over a year increased their holdings to 13.6 billion ADA (up from 1.2 billion in June 2024).
Traders have also raised their positions, hinting at rising optimism for Cardano's future.
📌 Fact Box:
- MVRV Ratio: Cardano’s Market Value to Realized Value (MVRV) stands at 1.26, indicating that ADA is highly undervalued. (Assets become overvalued when MVRV exceeds 3.8.)
Challenges for Cardano’s Ecosystem
While Cardano shows signs of recovery, its ecosystem faces challenges:
Developer Activity: The network has struggled to attract new developers in recent years.
DeFi TVL: Cardano’s total value locked (TVL) in DeFi is just $436 million, lagging behind networks like Base, Sui, and Aptos.
Top cryptocurrencies in the Cardano ecosystem include Snek, SingularityNET, Iagon, and Indigo Protocol, but growth remains slow compared to competitors.
Cardano Price Prediction 2024: What’s Next for ADA?
Despite its hurdles, Cardano (ADA) remains a strong contender for recovery.
Bullish Scenario: A breakout above $1.3 could propel ADA into a sustained uptrend.
Bearish Scenario: A dip below $0.75 might trigger a drop toward the $0.5 support zone.
For long-term investors, the price of Cardano appears undervalued at current levels. With strong whale confidence and a stable support zone, ADA could surprise the market in 2024.
Cardano coin is at a critical juncture. Whether you’re trading ADA for short-term gains or holding for long-term growth, keep an eye on key levels and on-chain metrics. The next breakout could define Cardano’s future in 2024!