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Cardano (ADA) experienced a major decline on January 3rd. This coincided with Bitcoin’s (BTC) fall from $45,800 to $40,800. Despite short-term losses, ADA buyers were not discouraged by the bears.
ADA’s Demand Zone
On the contrary, prices were trading near the demand zone. The cryptocurrency network displayed commendable performance in 2023 and is likely to continue this trend into 2024. ADA has been trading within a certain range since December 14th, but this only became apparent a few days later. The price rose from $0.51 to $0.68. The mid-range level of $0.595 has acted as a strong support level for the past two weeks.
The leading cryptocurrency, Bitcoin, suffered heavy losses on January 3rd, dragging the market down, which breached ADA’s support. This move also highlighted the significance of the $0.535 4-hour rising order block for Cardano buyers. At the time of writing, the H12 RSI was moving below the neutral 50, reflecting the downward momentum in the market.
Altcoin On-Chain Data
The OBV had been gradually increasing since the beginning of the year, but the bulls were not very strong. A significant increase in age consumption was observed on December 27th. This coincided with a sharp decline in ADA’s average cryptocurrency age, indicating that a large amount of inactive tokens were moved and holders were selling their tokens.
Development activities were high in recent months, but as expected, there was a significant drop during the holiday season. It is expected to return to normal levels soon. Social volume was also quite high. The average cryptocurrency age metric also began to rise. Taken together, ADA could potentially make another move northward. Consequently, Cardano (ADA) is showing resistance at established support levels despite the significant drop on January 3rd. Technical analysis and development activities indicate that ADA is holding strong in the demand zone and carries the potential for a positive move.
