Cardano (ADA): Strong Bullish Indicators Point to Potential Upside
In recent weeks, Cardano has undergone significant gains, and investors are now looking for potential catalysts that could further drive up its price.
Several indicators are now displaying bullish data for Cardano (ADA) as the altcoin surged 14% in the past week.
ADA profitability and bid-ask volume
The increased profitability of ADA, which has risen by 8%, makes the asset more attractive to traders and investors, drawing more market participants to the cryptocurrency and fueling its upward trend.
The bid-ask volume imbalance has also tilted towards “buy” orders, indicating strong demand for the cryptocurrency at its current price. The bullish momentum on the futures market has contributed to the positive sentiment towards ADA, encouraging further buying activity and driving prices higher.
Cardano on-chain activity
The recent spike in trading volume for Cardano is also a sign of increased interest in the asset, potentially leading to more price volatility and gains for traders who capitalize on the heightened market activity.
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On-chain data indicates a surge in whale transactions and positive signals in other relevant metrics. The upswing appears to have started on Feb 1, following the announcement of Cardano’s crypto-backed Djed stablecoin.
Whale transactions measure daily transactions that surpass the $100,000 threshold, and a closer look at previous market cycles shows how an uptrend in whale transactions has often preceded ADA price upswings. If this trend continues, it could signal more gains for ADA holders.
Cardano long-term holders
Moreover, the share of coins held by Cardano long-term holders has increased compared to short-term traders in recent weeks. The wallet balance of long-term holders has risen, while the balances held by short-term traders have marginally decreased.
Between Feb 3 and Mar 22, the balance on long-term holders’ wallets increased from 8.5 billion ADA to 9.7 billion ADA. In contrast, the coins held by short-term traders were reduced by nearly 200 million ADA.
ADA price analysis and prediction
Additionally, ADA has broken through the 50-day moving average. Historically, this key technical level has acted as resistance or support for the cryptocurrency, signaling a bullish phase and potential for continued upward movement toward the 200-day moving average.
The Exchange Market Depth chart from IntoTheBlock indicates that ADA could break above $0.40 soon.
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This chart depicts critical support and resistance points based on current prices, with the Market Depth spread showing the limit orders placed by ADA traders across top exchanges.
Based on this model, Cardano will likely face minimal resistance until it reaches $0.40, where 1.6 billion ADA is up for sale. If Cardano beats this resistance, it could rally 30% towards $0.50, with another 1 billion ADA sell-orders open.
However, to invalidate this bullish stance, the Cardano price must fall below the buy wall of 4.7 billion ADA or around $0.30. If this support fails, the ADA price may fall closer to $0.25.
At the time of writing, ADA is trading at $0.37 after a 14.56% increase in the past week.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
