Cardano’s native cryptocurrency, ADA, has experienced a partial retracement after reaching $0.70 and losing the critical support level at $0.6. Despite this, the blockchain network has shown significant development activity, with an increase in contributors, indicating long-term potential.
Earlier this month, ADA rallied to $0.70 but subsequently declined after reaching a peak of $0.69 on December 14. The altcoin also lost the critical support level at $0.6, despite a bullish market structure on higher timeframes.
However, there is positive news for long-term investors as the Cardano blockchain network has seen a notable increase in the total number of contributors to development activity. This signals that ADA remains a promising asset to hold onto.
Last week, ADA’s price reversed after dropping to its crucial support zone at $0.55. Since then, the price has recovered by nearly 10%, and it is currently trading 2% up at $0.6016 with a market cap of $21.2 billion.
Cardano is currently within a significant demand zone, ranging from $0.6016 to $0.8421, with 208,690 addresses acquiring 2.07 billion ADA tokens. In the event of a dip, support for Cardano’s price is expected within the range of $0.5450 to $0.6016. On the other hand, if ADA maintains its positive momentum and extends its rally, it could surpass the resistance at $0.8421 and aim for the psychological barrier at $1.
The Network Realized Profit/Loss (NPL), which assesses the profitability or realized losses of Cardano transactions, indicates that ADA holders have been involved in profit-taking. Notably, significant addresses holding ADA tokens have been realizing gains in the cryptocurrency, especially in transactions involving whale wallets holding $100,000 or more.
Looking at the Cardano price prediction, ADA has been following an upward trend since October 19, with higher highs and higher lows. It reached a peak of $0.6802 on December 14, and there is potential for further climb toward the Fair Value Gap between $0.7021 and $0.7258. To reach $0.70, Cardano needs to surpass the resistance at the 38.2% Fibonacci retracement level at $0.6214.
However, a daily candlestick close below the 10-day Exponential Moving Average (EMA) at $0.5854 could challenge the bullish outlook. In case of a decline, potential support levels lie at $0.5854 and the 23.6% Fibonacci level at $0.4745.
The Total Value Locked (TVL) in Cardano serves as a significant indicator of the chain’s relevance and demand in the market. Cardano’s TVL crossed the $425 million mark on Tuesday, reinforcing a bullish outlook for the asset’s significance in the ecosystem. However, it retraced from its highest point of $444 million on December 14 to $425 million.
Overall, Cardano continues to show promise with its development activity and potential for further price growth.
