Cardano price reclaims critical support level after sinking to 22-month lows
- Cardano price fell to $0.330, the zone that was last tested back in January 2021.
- Over the last few days, ADA price recovered by 23%, turning $0.409 into support.
- Despite not much growth in investor count, transactions on-chain have been consistently rising.
Cardano price has been terrifying investors and traders worldwide after dipping significantly recently. Although it gained back all that it lost in the following couple of days through the broader market bullish cues and the increase in investors' activity. However, it still has a long way to recovery.
Cardano price makes a critical jump
Cardano's price climbed the charts by 23.53% to close above the critical support level of $0.409 yesterday before slipping slightly below it today, trading at $0.405. Over the last ten days, this rise came after the cryptocurrency fell through the support level to hit $0.330. Establishing it as the new low of 2022, ADA was last seen at this point in January 2021.
But the improving situation of the markets was a crucial factor in the altcoin's recovery. However, Cardano is yet to note whatsoever recovery.
As per the Fibonacci retracement from $1.213 to $0.384, the first sign of recovery is at $0.580. This price point coincides with the 23.6% Fib line and the bounce-off point for breaching through the resistance block.
Marked from $0.595 to $0.747, this area has been tested as resistance multiple times since April 2022 but breached only once. Rising above this would place ADA into a recovery rally which could be supported by the growing participation of Cardano investors.
Cardano investors make an appearance
After months of minimal activity, ADA holders became active on the network again, which was evident in the number of active addresses. The figure rose from 56,000 to 72,000 in the span of two weeks.
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Cardano active investors
However, the number of transactions conducted on-chain grew by a much higher margin. Rising from 61,000 transactions to 96,000 transactions, the network registered a 57% growth. This is despite just a 28.5% increase in investor presence on-chain.
Cardano network transactions
Thus, Cardano holders are engaging more on-chain, which is a positive sign for the price. This development bore results with the 23% rise and would continue to do so if the conditions persist.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
