Cardano (ADA) has seen a significant shift in its price action recently, as it faces both market volatility and the challenge of maintaining key support levels. After demonstrating positive momentum earlier in the month, ADA has encountered a pullback. Despite this, the cryptocurrency has successfully defended the crucial $0.70 level, suggesting that the bulls are still actively protecting this threshold and preventing a deeper decline.

Following a solid four-day rally that pushed the price to a high of $0.746 on April 24, ADA began to show signs of weakening. The token experienced two consecutive days of losses, and if the trend continues, it may mark a third day of downward price movement. However, the $0.70 price level has acted as a strong psychological barrier, and ADA has managed to hold firm at this point, which could indicate continued buying interest and prevent a more significant correction, at least for now.

The $0.70 level holds particular significance as it lies between the daily 50-day simple moving average (SMA) at $0.674 and the 200-day SMA at $0.764. This makes the $0.70 price point a natural battleground for both bulls and bears, where the next move for ADA will likely be determined. So far, the bulls have managed to keep ADA above this level, suggesting that the underlying fundamentals of the cryptocurrency remain strong despite the broader market’s volatility.

If Cardano can maintain its position above the $0.70 mark and regain some upward momentum, it could potentially aim for the next resistance point at the 200-day SMA at $0.764. A decisive break above this level could pave the way for a more substantial rally, with the $1.00 level becoming a potential target. This scenario could signal a shift in sentiment, encouraging further buying interest and a potential resumption of the upward trend seen earlier in April.

On the other hand, if ADA fails to hold the $0.70 support level, the price could face further declines. The next key support zone lies at the 50-day SMA around $0.674, and if this level is breached, Cardano could see a deeper correction, with the $0.60 mark acting as the next potential support.

The situation remains fluid, and ADA’s ability to hold the $0.70 level in the coming days will be crucial in determining its next move. A fresh rebound from this level could provide the momentum needed for a breakout, while a failure to defend this support may lead to further downside.

Meanwhile, Cardano’s underlying network continues to show signs of growth and adoption. According to the latest update from Input Output Global (IOG), there are currently 1,993 projects being developed on the Cardano blockchain. This robust ecosystem highlights the ongoing development and interest in the platform. Token activity remains strong, with 10.77 million native tokens and 212,489 token policies issued on the network. Furthermore, the adoption of smart contracts is increasing, with 131,015 Plutus scripts and 6,492 Aiken scripts deployed, showcasing the growing utility of the Cardano network.

On the governance side, the platform has also seen growth, with 1,261 decentralized representatives (DReps) registered and 935 actively participating. This indicates a 0.49% increase in decentralized representation since last week, which is a positive sign for the ongoing development of Cardano’s decentralized ecosystem.

In conclusion, while Cardano is facing short-term price pressure and a critical battle at the $0.70 level, its underlying network fundamentals remain strong. The coming days will be crucial in determining whether ADA can break through resistance levels and resume its upward momentum or if it will face further declines. Investors and traders will need to watch for any changes in market sentiment that could influence ADA’s next major move.