The crypto market has witnessed a substantial surge in Cardano trading volume over the last 24 hours, yet the blockchain’s native token, ADA, has failed to deliver a proportional price increase. Data from the information platform CoinGlass reveals that Cardano, currently the 11th largest cryptocurrency by market capitalization, experienced a 150% surge in trading volume within the past 24 hours, amounting to approximately $477 million.
CoinGecko’s data also supports this trend, showing a substantial 67% increase in Cardano’s trading volume compared to the previous day’s figures, which stood at $358 million. However, despite the surge in trading activity, ADA’s price performance has not seen a corresponding rise.
The data paints a grim picture for ADA holders. CoinGecko’s figures indicate that the token is currently trading at a price 89% lower than its all-time high of $3.09, recorded during the 2021 bull run. The bearish sentiment extends to shorter time frames, with ADA recording losses of 4.1% in the last 24 hours, 10% in the past two weeks, and a staggering 30% over the past month. This decline underscores investors’ bearish sentiment towards the token, coupled with broader market fears and a lack of bullish momentum that has kept ADA’s price in a significant bearish phase.
However, not all hope is lost for Cardano enthusiasts. 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 that although the price action is undeniably weak right now, it is not about conceding defeat. Instead, this moment could be used to identify key levels where ADA could make a strong comeback. The key level to watch is $0.69, marking the entry into an uptrend channel. The last time ADA entered this channel, 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. These key technical indicators have previously been crucial support for ADA’s price. However, since the market-wide correction that began in April, the token has been trading well below these EMAs.
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 can materialize. At the time of writing, the ADA price stands at $0.3251.
