In the past 24 hours, the crypto market has seen a significant surge in the trading volume of Cardano. Data from CoinGlass and CoinGecko both confirm this uptrend, with Cardano experiencing a 150% and 67% increase in trading volume, respectively, amounting to around $477 million. Despite this surge in trading activity, the price of Cardano’s native token, ADA, has not seen a corresponding increase.
Unfortunately for ADA holders, the data shows a bleak picture. ADA is currently trading at a price that is 89% lower than its all-time high of $3.09, which was achieved during the 2021 bull run. The bearish sentiment extends to shorter time frames as well, with ADA recording losses of 4.1% in the last 24 hours, 10% in the past two weeks, and a substantial 30% in the last month alone. This downward trend reflects investors’ bearish sentiment towards the token and the lack of bullish momentum in the broader market.
Despite the grim outlook, there is still hope for Cardano enthusiasts. Crypto analyst “Trend Rider” suggests that the current price action could present an opportunity for investors to capitalize on potential upside. The analyst highlights a critical level of $0.69, which, if breached, could signal the start of an uptrend for ADA. The last time ADA broke this level, it surged from $0.02 to $3, showcasing the potential for significant gains if the critical level is surpassed.
While the analyst remains optimistic about ADA’s potential, there are significant challenges ahead. The token has encountered a major obstacle at the $0.3538 mark, which has hindered any surge to higher levels and tested the token’s 200-day and 50-day exponential moving averages (EMAs), represented by the yellow and blue lines on the daily chart. These key technical indicators, which were previously crucial support levels for ADA’s price, have now become resistance levels since the market-wide correction that started in April.
In the near term, ADA must surpass the $0.3856 mark where the 200-day EMA is currently positioned before any potential short-term uptrend materializes. This indicates that the path to the critical $0.69 level won’t be easy, and ADA will need to overcome several technical obstacles to regain bullish momentum in the market. Investors and traders should closely monitor these key levels and technical indicators to gauge ADA’s potential for a comeback in the crypto market.
While the recent surge in trading volume for Cardano is a positive sign, the lack of price performance and the technical challenges ahead highlight the precarious situation for ADA in the current crypto market landscape. It remains to be seen whether ADA can overcome these obstacles and regain its bullish momentum in the near future.