ADA could top $0.45 if the $0.38 support level holds: check forecast

Cardano (ADA) failed to overcome the $0.40 psychological level on Monday and has now declined to $0.39.

This performance comes as the broader market rally stalls, with Bitcoin still stuck around $92k.

Currently, the market metrics show mixed signals. Whale accumulation and rising long bets suggest retail demand, but the negative funding rates and declining social dominance indicate that some traders are still cautious.

Investor demand for ADA remains mixed

ADA is up 1.2% in the last 24 hours and is currently trading at $0.391 per coin.

The positive performance comes as the broader crypto market recovers from the slight dip recorded on Monday.

Currently, Santiment’s Supply Distribution data supports a bullish outlook for ADA, with whales accumulating the token at recent price dips.

The metric shows that whales holding between 10 million and 100 million ADA tokens have accumulated a total of 180 million ADA tokens from January 8 to Tuesday.

However, another whale holding between 1 million and 10 million ADA tokens and 100,000 and 1 million ADA, sold a total of 50 million tokens. 

Coinglass’s long-to-short ratio for ADA currently stands at 1.33, its highest level in over four weeks.

The ratio climbing above 1 suggests that more traders are betting on the Cardano price to rally.

Santiment added that Cardano’s social dominance has declined to 0.037%, the lowest level since early December, and it has also been falling since early January.

The declining social dominance shows waning investor attention and reduced speculative interest, which could result in a bearish movement for the coin. 

Finally, ADA’s funding rates have flipped negative on Tuesday, indicating that shorts are currently paying longs.

If the funding rates remain negative, ADA’s price could decline in the near term. 

ADA eyes the $0.45 level as the $0.38 support holds

The ADA/USD 4-hour chart remains bearish as Cardano risks losing its tenth place in the market to Monero if XRM continues its rally.

ADA’s price rejected from the 50-day EMA at $0.41 on January 6 and has lost 9% of its value since then.

It retested the $0.38 daily support level on Tuesday and has now bounced back to trade above $0.39.

If ADA closes the daily candle below the $0.38 support, the decline could extend towards the December 31 low of $0.32. 

The Relative Strength Index (RSI) on the 4-hour chart has declined to 49, below the neutral 50.

However, the Moving Average Convergence Divergence (MACD) lines are converging, further suggesting an indecisive view.

If the daily candle closes above $0.38, ADA could resume its rally and surge past the 50-day EMA at $0.41.

The next major resistance level stands at $0.45. 

The post ADA could top $0.45 if the $0.38 support level holds: check forecast appeared first on Invezz