The crypto market has witnessed a substantial surge in the Cardano trading volume over the last 24 hours. Yet, the blockchain’s native token, ADA, has failed to deliver a proportional price increase.
Bullish Cardano Volume Data
According to data from the information platform CoinGlass, Cardano, currently the 11th largest cryptocurrency by market capitalization, has experienced a 150% surge in trading volume in the 24 hours, amounting to approximately $477 million.
CoinGecko’s data also corroborates this trend, revealing a substantial 67% increase in Cardano’s trading volume compared to the previous day’s figures, which stood at $358 million. However, this surge in trading activity has yet to translate into a corresponding rise in ADA’s price performance.
The data paints a rather grim picture for ADA holders. CoinGecko’s figures indicate that the token is currently trading at a price that is 89% lower than its all-time high of $3.09, which was recorded during the 2021 bull run.
The bearish sentiment also extends to shorter time frames, with ADA recording losses of 4.1% in the 24 hours, 10% in the past two weeks, and a staggering 30% in the last month alone.
This showcases investors’ bearish sentiment in the token, coupled with the broader market fears and lack of bullish momentum that has embroiled ADA’s price in a significant bearish phase. However, not all hope is lost for Cardano enthusiasts.
Potential Upside For ADA’s Price
Crypto analyst “Trend Rider” suggests that the current price action presents an opportunity for investors to capitalize on potential upside. The analyst points to a critical level of $0.69, which, if breached, could signal the beginning of an uptrend for ADA. The analyst stated:
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.
Despite the analyst’s optimism, the path to the $0.69 level appears challenging for ADA. The token has encountered a significant obstacle at the $0.3538 mark, which has prevented a surge to higher levels and tackled the token’s 200-day and 50-day exponential moving averages (EMAs), represented by the yellow and blue lines on the daily chart, respectively.
These key technical indicators have previously been crucial support for the ADA price. Still, since the market-wide correction that began in April, the token has been trading well below these EMAs.
Consequently, in the near term, the price must surpass the $0.3856 mark, where the 200-day EMA is currently placed, before any potential short-term uptrend materializes.
At the time of writing, the ADA price stands at $0.3251.
Featured image from DALL-E, chart from TradingView.com