Cardano’s price recovery stalled at $0.44 on July 18 after a 40% gain in 14 days; on-chain data analysis examines the bullish and bearish catalysts that have driven ADA’s price stagnation over the past 72 hours.
Cardano Decentralized Trading Volumes Surge Amid Mixed Market Signals
Since July 5, Cardano has been on an upward trajectory, reflecting broader crypto market trends. But after nearly 2 weeks of sustained uptrends, mixed signals have emerged in the Cardano ecosystem as bulls and bears battle for dominance in the next phase of the market.
ADA prices have increased significantly over the past two weeks from July 5th to July 18th. The chart above shows how ADA prices have increased by 44% from their monthly low on July 5th.
However, a closer look at the chart shows that Cardano’s price rally has struggled to rise above the $0.45 resistance despite the bullish sentiment surrounding the crypto sector this week. This rare market alignment suggests that there are currently conflicting bullish and bearish catalysts at work in the Cardano markets.
On the positive side, Cardano’s decentralized exchange (DEX) has seen significant growth in trading volumes, highlighting the growing interest in its DeFi ecosystem. According to recent data, Cardano’s 24-hour trading volume has surpassed $350 million, while DEX volumes have surpassed 50 million ADA this week.
This spike indicates growing adoption of DeFi applications on the Cardano blockchain, which generally correlates with higher network activity and potentially positive effects on the health of the network. Despite this surge in DEX activity, Cardano price continues to show bearish trends. ADA has seen a notable correction, trading around $0.4493, down 3% over the past week.
Further analysis shows a decrease in network activity, with the number of daily active addresses falling from 39,300 to 31,000 and the number of daily transactions falling from 94,000 to 49,500. These metrics indicate some bearish pressure on ADA, which is reflected in the recent price action.
Despite the short-term bearish signals, the long-term outlook remains positive. Cardano co-founder Charles Hoskinson and other supporters believe in its potential to revolutionize financial markets. Additionally, speculation about the possible approval of a Cardano spot ETF could serve as a significant bullish catalyst.
Cardano Price Prediction: Bulls Battle $0.45 Resistance
Cardano (ADA) has shown impressive performance in recent days, with the price rising from $0.30 to $0.44, representing a 44.07% gain over the last 13 days. This bullish momentum has brought ADA close to a critical resistance level at $0.45, which it needs to overcome to maintain its upward trajectory.
The chart illustrates a steady bullish trend, supported by a series of higher highs and higher lows. The Parabolic SAR dots below the price point to continued bullish sentiment, while the ALMA (Adaptive Moving Average) line is currently at $0.44, acting as a dynamic support level. This suggests that any short-term pullbacks could find support around this level, potentially presenting a buying opportunity for traders.
Despite the recent gains, ADA faces significant resistance at $0.45. A decisive break of this resistance could pave the way for further gains, targeting the next major resistance level around $0.50. On the other hand, a major support level is at $0.36, as indicated by the Parabolic SAR, which also coincides with the previous consolidation zone. A drop below this level could signal a change in sentiment, potentially leading to a deeper correction.
The RSI (relative strength index) is at 55.93, still below overbought territory, suggesting there is room for further upside. This is in line with the overall bullish outlook, although traders should be on the lookout for any signs of RSI divergence, which could indicate weakening momentum.
To sum it up, Cardano technical indicators are leaning towards a bullish sentiment, with potential for further gains if the $0.45 resistance is broken.
