- Cardano is consolidating between $0.529 and $0.611 following a recovery from a multi-week low of $0.51 on June 22.
- The $0.54 level is being monitored as a potential accumulation zone, with traders considering it a key support level.
- A breakout above $0.61 may lead to a move toward the 50-day and 200-day moving averages, setting the tone for a trend shift
Cardano’s price has remained stable in a narrow range between $0.529 and $0.611 since rebounding from a low of $0.51 recorded on June 22. As the digital asset consolidates, the broader cryptocurrency market is monitoring its next direction amid persistent macroeconomic uncertainties and subdued momentum in Bitcoin.
According to on-chain analyst Ali, the $0.54 price level could serve as an ideal accumulation point if tested. The analyst noted that this zone has previously shown strong demand and may attract buying pressure again. This level gained significance after Cardano quickly rebounded from it on July 2, reaching $0.611 the following day.
Current Price Movement and Market Sentiment
At the time of writing, ADA has risen by 2.19% in the past 24 hours to trade at $0.585. The market showed signs of modest recovery early Sunday, leading to the liquidation of $71 million worth of short positions across the crypto space. Despite this bounce, overall market sentiment remains cautious due to external economic factors and Bitcoin’s recent stagnation.
In case the price of Cardano falls below the level of 0.54, it may challenge the following level of support at $0.50. Buyers are likely to regard this level with a great deal of defense. Nevertheless, a breakdown below the $0.50 mark has the potential to trigger a descending triangle pattern that might drive ADA lower still to the price levels of $0.40.
The positive side of the situation is that, in case ADA crosses above $0.61, it might rise to reach close to the 50-day simple moving average at the price of $0.67. Further bullish momentum may then be aimed at the 200-day simple moving average at around $0.758.
The market outlook is neutral
The longer-term view of Cardano is neutral as the investors wait to receive affirmation on the direction at major levels. Price action at levels of $0.54 and onwards to $0.61 is being keenly monitored by the market players, which may define temporary momentum. Even though the short-term outlook of ADA holds the potential of stabilization, further fluctuations are likely to rely on the overall market signals and volume-intensive responses to some critical technical areas.
