Cardano (ADA) No Longer in Distress? This Price Level Is Pivotal

Cardano (ADA), within the last seven days, plunged by 5.01% to a low of $0.6879, sparking concerns among market participants. However, the asset has rebounded in the last 24 hours, signaling it has exited the distress zone.

Cardano price rebound signal renewed momentum

CoinMarketCap data reveals that Cardano climbed by over 2% in the last 24 hours, higher than the broader cryptocurrency market performance of 0.96%. Notably, Cardano’s Relative Strength Index (RSI) rose from 40 to 46, exiting oversold territory, a development that eased sell pressure on the asset.

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The rebound pushed the asset above the $0.72 support level, signaling recovery for ADA. As of press time, Cardano is changing hands at $0.7435, representing a 2.62% increase in the last 24 hours. It had previously reached a peak of $0.7473 before its slight drop due to market fluctuations.

However, trading volume remains a major concern that could impact the gains made so far. Investors remain cautious, with volume in the red zone at a 23.86% drawdown, totaling $682.59 million. Cardano bulls need to defend the current price outlook to prevent any slips.

If the volume refuses to rise alongside an increase in price, ADA could slip to $0.70 or breach that support and plunge even lower. A significant spike in trading volume, however, could push the price toward the $0.90 level if the broader crypto market remains stable.

Analyst remains bullish on ADA

Meanwhile, Cardano’s utility could also support price stability. The Midnight Network airdrop has recorded significant adoption and growth, with about 11,000 wallets claiming the token. Charles Hoskinson, founder of Cardano, celebrated the development as a sign of positive engagement among users in the ecosystem.