Cardano (ADA) has clawed its way back from a rough start to April, reclaiming the $0.50 mark after a near 40% plunge. This impressive turnaround comes amidst a broader market recovery following the recent Bitcoin (BTC) halving event.
In the first half of April, ADA mirrored the broader market downturn, plummeting from $0.65 to a 2024 low of $0.40 by April 13th. However, the tide seems to be turning. Since then, ADA has surged by nearly 30%, suggesting a renewed sense of optimism among investors.
Bullish Sentiment and Technical Indicators
Several factors contribute to ADA’s recent recovery. The post-halving buying pressure witnessed in Bitcoin has spilled over to major altcoins like Cardano and Ethereum (ETH). Both ETH and Solana (SOL) have successfully recaptured key resistance levels at $3,200 and $150 respectively, potentially paving the way for a similar breakout for ADA.
Technical indicators also hint at a potential bullish trend. On-chain data from IntoTheBlock reveals a significant shift in order flow on major cryptocurrency exchanges. Specifically, Cardano bulls have placed substantial buy orders for 240 million ADA at an average price of $0.49. On the other hand, sell orders currently stand at a lower 210 million ADA.
This imbalance in order books suggests an “excess market demand” for ADA. Essentially, buyers might have to offer higher prices to have their orders filled quicker, potentially pushing the price above $0.50 and towards the $0.60 resistance level.
Can Cardano Sustain the Momentum?
While the current signs are encouraging, the question remains: can Cardano sustain this momentum?
Restoring investor confidence and erasing the losses from the first half of April hinges on ADA successfully breaching the $0.60 resistance level. Further positive developments within the Cardano ecosystem, such as smart contract functionalities going live, could provide the necessary fuel for a more sustained price increase.
Also Read: Cardano (ADA) Soars with 25 Billion ADA Move: Will Price Break $0.50 Resistance?
Overall, Cardano’s recent rebound is a welcome sign for its community. With strategic buying pressure mounting and key technical indicators flashing green, ADA appears poised for a potential breakout in the coming days. However, only time will tell if this bullish momentum can be sustained.
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