Cardano (ADA), the 11th largest cryptocurrency by market capitalization, has experienced a significant increase in trading volume over the past 24 hours, yet this surge has not been matched by a proportional rise in its price.
Recent data from CoinGlass highlights a 150% surge in Cardano’s trading volume within the last day, totaling approximately $477 million. Similarly, CoinGecko reports a notable 67% increase in trading volume compared to the previous day, where volume was around $358 million. Despite this uptick in trading activity, ADA’s price has not shown a corresponding upward movement.
Currently, ADA is trading at a price that is 89% lower than its all-time high of $3.09, achieved during the 2021 bull run. The token has faced notable losses, recording a 4.1% drop in the past 24 hours, a 10% decline over the past two weeks, and a significant 30% decrease in the last month. This ongoing bearish sentiment reflects broader market concerns and a lack of bullish momentum.
Despite the current bearish trend, there is potential for a price recovery according to crypto analyst “Trend Rider.” The analyst suggests that ADA's price action may offer an opportunity for investors if the token can breach the critical level of $0.69. Trend Rider notes:
“Yes, the price action is undeniably weak right now, but this isn’t about conceding defeat. Instead, let’s use this moment to our advantage by identifying key levels where ADA could make a strong comeback. The critical level to watch? $0.69. This marks the entry into an uptrend channel. The last time ADA broke in here, it skyrocketed from $0.02 to $3.”
However, reaching the $0.69 level may be challenging for ADA. The token has faced significant resistance around the $0.3538 mark, a barrier that has also interacted with the token’s 200-day and 50-day exponential moving averages (EMAs), depicted by the yellow and blue lines on the daily chart. Historically, these EMAs have been crucial support levels for ADA's price.
Since the market-wide correction began in April, ADA has been trading well below these EMAs, indicating a tough road ahead for a potential rally. The current technical indicators suggest that overcoming these obstacles will be critical for ADA to initiate any significant price recovery.
While Cardano (ADA) has seen a notable increase in trading volume, the token's price remains stagnant, reflecting broader market bearishness. Investors and analysts are closely watching the critical level of $0.69 as a potential signal for an uptrend. However, the current resistance and technical indicators suggest that ADA faces a challenging path to recovery. For now, ADA holders and potential investors will need to navigate these turbulent conditions with caution, keeping an eye on key levels and market dynamics for any signs of a turnaround.
August 2024, Cryptoniteuae