Cardano (ADA) Key Support Level Holds Firm Amid Market Volatility

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Cardano (ADA) Key Support Level Holds Firm Amid Market Volatility

Cardano (ADA), now the ninth-largest cryptocurrency by market capitalization, is trading around a key support level near $0.69. At the time of writing, ADA was down 2.63% in the last 24 hours to $0.682 and down 4.65% weekly.

According to crypto analyst Ali, if ADA manages to sustain this level, it could trigger a rebound toward the $0.77 mark. The essence of the $0.68 to $0.69 support range was seen this month with ADA rebounding twice from here in March. Cardano rose to highs of $0.77 following Sunday, March 23s rebound from $0.69.

The crypto market saw a sudden downturn on Friday, wiping out gains from earlier in the week. Bitcoin plunged as much as 5% to around $83,000 on Friday, erasing much of the week‘s gains. Cardano also fell, continuing its decline from Wednesday’s high of $0.774. After plunging to lows of $0.689 on Friday, Cardano hit intraday lows of $0.677 on Saturday before recovering marginally to where it presently trades.

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The drop in crypto prices coincided with a sell-off in U.S. stocks owing to weak economic data, as macroeconomic concerns continued to weigh on the larger crypto market. Hopes for the cryptocurrency rebound to continue were dashed on Friday, as a market-wide meltdown erased nearly all gains from earlier this week.

Market sees sell-off

The crypto market is currently trading in losses in the early Saturday session, extending Fridays slump, with the majority of digital assets down as investors considered a higher-than-expected inflation report. The February PCE inflation report, released on Friday, showed a 2.5% year-over-year increase in the price index, with core inflation at 2.8%, somewhat higher than anticipated.

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In the last 24 hours, crypto derivatives traders have suffered $308 million in liquidations, according to CoinGlass data. The majority of this figure came from leveraged longs, traders expecting crypto prices to rise, totaling $270 million.

In the coming session, traders and investors will keep a careful eye on ADAs price behavior near important support levels, first at $0.69 and subsequently at $0.64. A strong rise over the daily moving averages of 50 and 200, at $0.754 and $0.723, would be the first sign of strength, with a target of $1. Cardano is currently at a key juncture, with its next move likely influenced by broader market trends and investor sentiment.