Cardano (ADA) Makes Dramatic U-Turn, Defends $0.7 Level

Cardano (ADA) has faced a sharp turn in its price action. After initially displaying strong positive momentum, ADA changed course, mirroring profit-taking in the broader market.

After climbing for four days in a row to a high of $0.746 on April 24, the ADA price began to decline. Cardano has marked two consecutive days in losses and is on track to mark the third if the price ends down today.

Despite the pullback, Cardano has managed to hold firm the psychological $0.70 level. ADA holding steady at this level might signal that buyers are still defending it, preventing a deeper correction, at least for now.

The $0.70 level is situated between the daily SMA 50 and 200 at $0.674 and $0.764, respectively, making it a natural battleground for bulls and bears. So far, the bulls have succeeded in keeping ADA afloat, indicating that fundamental strength remains despite the market volatility.

If ADA can remain above $0.70 and regain upward momentum, it may make another run at the immediate hurdle at the daily SMA 200 of $0.764. A significant rise above here would target the $1 level next.

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On the other hand, failure to sustain $0.70 might expose Cardano to further declines, with the next potential support level at the daily SMA 50 at $0.674 and subsequently $0.60.

For the time being, ADAs ability to hold the line keeps the door open for a fresh rebound, but market sentiment in the coming days might be critical in deciding its next major move.

Cardano network update

According to the most recent Input Output Global (IOG) update, there are now 1,993 projects being built on the network.

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Token activity remains high, with 10.77 million native tokens and 212,489 token policies issued. Smart contract adoption is increasing, with 131,015 Plutus scripts and 6,492 Aiken scripts currently deployed. The network has processed a total of 108.73 million transactions.

On the governance side, 1,261 DReps are registered, with 935 actively engaged, indicating 0.49% growth in decentralized representation since last week.