The Cardano (ADA) has finally come out of its slump and defied the downtrend. It may witness a range breakout soon and will skyrocket quickly.
The ADA coin replicated a surprising upmove this week, and follow-on buying action was noted. Key indicators have suggested a further rise of over 5% from here.
Over the past few months, the Cardano (ADA) price has been trading in a downtrend. However, the ADA price trades in a significant range throughout the month and is eyeing a breakout.
Amidst the bearish market cycle, the Cardano (ADA) price halted its correction and decisively sustained the 20-day EMA mark. Meanwhile, Cardano (ADA) initiated the rebound and might outperform ahead.
If the bullish wave triggers, ADA price has to cross the prompt hurdle of $0.500 to skyrocket the gains ahead. At press time, Cardano (ADA) trades at $0.0480 with an intraday surge over 1.02%, replicating a fresh bullish wave on the charts.
The pair of ADA/BTC is at 0.00000715 BTC and has a market cap of $17.70 billion. Analysts have suggested a neutral call and are still cautious.
Cardano Rebounds with a Surge in Volume: What Does It Mean?
This week, a smart recovery in the ADA price action was witnessed, with an uptick of over 35% in trading volume. Notably, the ADA price recovered over 15% and is looking for a breakout.
With the rise in demand for the coin and the surge in bullish sentiment, Cardano (ADA) is an ideal buy on dips.
Source: Santiment
Nonetheless, the sudden rise is fueled by the surge in trading volume. This week, a sharp surge in trading volume of over 90% was noted, reaching $460 Million.
This volume buying highlights the investor speculation and willingness to add ADA to their portfolio. Meanwhile, buyers have to break and sustain the 100-day EMA mark to trigger the rally.
The Relative Strength Index (RSI) curve sharply turned bullish and reached the overbought zone, highlighting a positive crossover on the charts.
Will Bulls Be Able to Reach the Cluster $0.500?
Following the sudden price rise, the ADA coin came into the limelight, and investors are closely tracking it.
Surge In Daily Active Addresses
Following the sudden price rise, the early indication was glimpsed by the active addresses data. In recent weeks, a notable rise of over 40% to 33.8k was noted.
Source: Artemis
Meanwhile, as per the GIOM indicator analysis, only 40% of the holders at the current price level are in profit, which might be a concern.
Source: IntoTheBlock
Futures Data Replicate the Short Covering Move
This week, the future derivative data highlights the short-covering activity, and sellers look trapped now.
Source: coinglass
The open interest dropped over 1.29% to $248.74 Million in the past 24 hrs and is highlighting a possible bullish move ahead.
The immediate support levels for the Cardano (ADA) coin are $0.04600 and $0.04300, whereas the key upside hurdle is around $0.0500, followed by $0.05200.
Conclusion
The Cardano (ADA) coin highlights fresh buying momentum and is eyeing to breach the neckline mark of $0.0500. Meanwhile, the sellers still have an edge, and buyers have to gain more momentum to defeat the seller army.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
