Cardano Reports 3-Day Consolidation at $0.33
ADA, the native coin of the Cardano blockchain, has lagged the broader crypto market over the past week. The global cryptocurrency market capitalization has risen more than 25.44%, adding more than $431 billion since August 5, helped by bullish news such as the approval of the Solana ETF in Brazil and the legalization of crypto mining in Russia.
Despite these market-wide gains, Cardano’s price action has been lackluster. The ADA price has risen modestly from $0.28 to $0.33, a gain of only 21%. Over the past three days, the ADA price has stagnated around $0.33, but recent data suggests that demand for ADA is growing.
ADA sees growing market demand
After three days of price stagnation, growing market demand could soon push ADA to a significant breakout. On-chain data shows an influx of ADA buy orders this week, which could be a harbinger of a bullish move.
Exchange order books that track buy and sell orders typically show price rise signals when buy orders outweigh sell orders.
The chart above shows a total of 198.86 million ADA in buy orders compared to 161.42 million ADA in sell orders. This excess demand, valued at approximately $67.5 million at the current average price, highlights the growing influence of bulls in the market.
Two factors indicate that this could be bullish for ADA in the coming days. First, the huge volume of buy orders indicates strong market confidence in ADA’s potential upside. Second, the accumulation of ADA at current levels could create a solid support base, making it difficult for bears to push the price lower.
ADA Price Forecast: $0.35 Target in Sight?
Although Cardano is consolidating, technical indicators point to a bullish outlook. The Keltner Channels indicator highlights that ADA is trading near its lower band, which often acts as a support level. If the price can hold above this lower band, it could move up to the middle band at $0.35, which serves as the next key resistance level.
A break above $0.35 is likely to attract more buying interest, potentially sending ADA towards the upper Keltner band at $0.43. However, if ADA fails to hold its current support at $0.28, a retest of this level could occur before any move higher.
In conclusion, it should be noted that although ADA’s recent performance has been disappointing, growing market demand and bullish technical indicators suggest that a breakout to $0.35 is possible in the near future.
