Cardano is maintaining position above critical demand levels following Friday's volatile trading session. The cryptocurrency reacted sharply to news of a $1.5+ billion security breach at Bybit, a major cryptocurrency exchange. Prices dropped over 7 percent in under six hours. The market-wide panic pushed ADA from local highs to key demand zones.
Bybit's prompt response and reassurances have helped stabilize sentiment. This prevented a more severe selloff across cryptocurrency markets.
Cardano continues to trade above crucial support thresholds, indicating bulls retain control if these levels hold. Notable analyst Ali Martinez shared technical analysis on social media platform X identifying the critical support zone for ADA between $0.67 and $0.80. This range represents a strong demand area with historical accumulation patterns. Maintaining this level is essential for ADA's near-term prospects.
"A breakdown below this zone could trigger further selling pressure," Martinez noted.
With market conditions beginning to normalize following the security incident, ADA could be positioned for a potential rebound. Bulls need to quickly reclaim lost territory and break above resistance levels to confirm recovery momentum. Market participants remain focused on broader cryptocurrency reactions to Bybit's security breach.
Cardano currently trades at $0.75 after failing to break the $0.82 resistance level. Bulls must push ADA above this threshold and establish it as support to signal an upward momentum shift. A successful breakout would potentially enable testing of the $0.85 level. This coincides with the 4-hour 200 moving average, a significant short-term strength indicator.
ADA remains in consolidation. Bulls must maintain control above the $0.73 level in coming days to confirm short-term strength. This would signal potential bullish recovery. Failure to hold above $0.73 could allow sellers to regain control. This would increase risks of a deeper correction.
Market uncertainty persists. However, reclaiming the $0.82 level could trigger a substantial rally toward higher resistance zones. Investors are closely monitoring whether Cardano can establish a higher low. This would break the bearish trend that has dominated recent weeks. Holding key support remains critical for sustainable recovery.
The extreme selling pressure witnessed across cryptocurrency markets since late December shows limited signs of abating. Despite ongoing volatility, some market participants express growing optimism that Cardano might soon reverse its bearish trend. Technical indicators suggest ADA sits at a pivotal juncture where sustained support above key demand levels could establish foundations for significant upward movement.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.