Cardano (ADA) is experiencing a significant resurgence in on-chain activity, with its 24-hour trading volume surpassing a whopping $550 million. This surge has translated into a positive price movement, with ADA rising 3% in the last 24 hours and 2% in the last week, currently trading at $0.46. This marks a potential turning point after a month-long bearish trend characterized by lower lows and lower highs.
While analysts caution that a complete reversal hasn’t yet occurred, they acknowledge the positive shift in market sentiment. ADA needs to break above $0.5761 to fully confirm a bullish trend, but several indicators suggest renewed investor interest.
Onchain analysis reveals a Chaikin Money Flow (CMF) surge to 0.6, indicating substantial money flowing into ADA. Additionally, the Relative Strength Index (RSI) has entered the bullish zone, aligning with the rising market cap and fully diluted market cap.
Reports from IntoTheBlock confirm these positive indicators, highlighting aggressive ADA accumulation by whales over the past few days. The platform revealed a daily transaction volume exceeding $100,000, with an average daily volume of nearly $14 billion. This signifies significant activity among large holders.
While large transactions can involve both buying and selling, Santiment’s on-chain analytics platform reports a potential bullish signal: increasing accumulation among large holders with addresses containing between 100,000 and 100 million ADA.
Technical analysts like Cobra Vanguard observe an expanding price channel since the beginning of the year, suggesting continued price volatility. He identifies $0.52 as the first resistance level, potentially leading to further climbs towards $0.57, $0.61, and $0.67, with $0.77 as the ultimate target. Renowned analyst Ali Martinez also predicts a one-to-four-day daily candle rebound, potentially marking the end of the correction phase.
With a combination of on-chain activity, technical analysis, and analyst predictions, Cardano (ADA) appears poised for a potential bullish breakout. While the future remains uncertain, the current momentum suggests a promising outlook for the coming days and weeks.
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