Cardano finally shows its capabilities after deteriorating since September 2021. The latest massive weekly crash had many leading cryptos hitting new lows of the year over the past couple of days. ADA is one of the few that retained its structural support zones.
ADA witnessed its price crashing from the $0.669 weekly high to the lows of $0.435. Meanwhile, the alternative token recorded a slight recovery, trading near $0.4961 at this publication.
The recovery emerged after Cardano retested the $0.448 support. The foothold stayed higher than the lows of $0.39, hit amid the May slump.
Authorized ‘Buy’ Wall?
Cardano’s current support shows buying momentum behind the ongoing reversal. Price movements show a buy wall inhibiting more declines around the support level. Moreover, the alternative token recorded a massive upsurge when it retested this zone in May.
The Relative Strength Index shows ADA didn’t dip into oversold conditions, regardless of the tangible drop within the past couple of days. The indicator plunged toward the 37-mark before a slight reversal.
Also, the Money Flow Index recorded substantial outflows. Nevertheless, the MFI touched 43 lows, confirming Cardano investors holding their tokens, following colossal accumulation around the current foothold.
According to Cardano’s market cap metric, the price bottomed on June 13 due to the upswings seen within the past couple of hours. It previously recorded a substantial drop as prices crashed.
The upward move confirms dip-buying by Cardano investors. Moreover, the massive increase in whale transactions exceeding $1 million confirmed the narrative.
Also, Cardano’s supply distribution metric confirmed accumulation by whales after the price slump. The metric indicated a surge in addresses with 1,000 – 10 million tokens. Surprisingly, Cardano addresses saw a significant increase within the past 24 hours.
The latest price movements by ADA show the token could witness a massive recovery, especially after the recent slump. Nevertheless, that will depend on trends in the broad market in response to the latest crash.
For now, bears control the crypto world. Bitcoin trades weak at $22,468. A BTC close beyond $24K can support near-term uptrends in the alt market.
Stay tuned for upcoming crypto news.
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