Cardano (ADA) experienced a notable price surge on August 23, briefly hitting $0.3765 before facing resistance around the $0.37 mark. Despite this uptick, the asset has largely remained stagnant, with bulls struggling to maintain momentum. Traders are now left in a quandary, debating whether the recent excitement is a sign of a major shift or merely the initial wave of speculation. As rumors swirl about a potential Pump.Fun derivative on the Cardano network, the question remains: Can this new development push ADA to the coveted $0.5 mark?
Cardano Price Analysis – Can The Pump.Fun Derivative Make a Difference?
Cardano’s recent performance has been a mixed bag. The asset saw a 2.1% rise to $0.3765 but still lags behind rivals like Tron (TRX) and Dogecoin (DOGE). The price has struggled to break through a significant resistance level, but a potential new addition to the Cardano ecosystem might provide the boost ADA needs.
Speculation is rife about the launch of a Pump.Fun derivative on the Cardano network, with three different projects reportedly working on it. The most anticipated of these is Snek.fun, a derivative from the Snek (SNEK) team, which is known for its prominence in the Cardano meme coin niche. While the launch date remains unconfirmed, this potential addition could be the catalyst for ADA’s price surge.
Market Sentiment – Traders and Whales in Flux
Current market sentiment is marked by indecision. On-chain analysis points to bearish tendencies, with ADA’s price rise from August 16 to August 23 accompanied by a drop in transaction volume. This divergence suggests that the bullish momentum may be weakening, potentially paving the way for a downturn.
Whale activity has been notable in recent days, with increased transaction volumes from August 18 to August 22. However, a drop in the Large holder netflow from August 21 to August 22 suggests that whales are cautiously offloading their holdings, possibly anticipating a price drop. Futures traders also reflect uncertainty, with an almost equal balance of Shorts and Longs, though Shorts slightly outweigh Longs, indicating a cautious bearish outlook.
ADA Price Forecast But $0.5 Within Reach?
Despite a brief recovery, ADA remains in a downward trend, trading below the 200-day EMA. The recent candles show indecision around the 50-day EMA ($0.3773), highlighting the market’s struggle to decide between continuing the downtrend or reversing course.
If Cardano can break and sustain a price above $0.3773, the next resistance level could be $0.4368, representing a 19.74% increase from the current price. However, the MACD line remains below the signal line, indicating weak bullish momentum, while the Chaikin Money Flow (CMF) value of 0.08 suggests a slight inflow of capital but is not robust enough to confirm a strong upward movement.
Also Read: Cardano [ADA] Eyes 100% Rally – Bullish Momentum Surges with 4% Gain In 24 Hours
If ADA fails to maintain a price above $0.3773, it could signal market weakness and a potential drop to $0.3145, challenging the current bullish thesis.
In conclusion, while the potential Pump.Fun derivative could be a game-changer for Cardano, market indicators and sentiment will be crucial in determining whether ADA can break through its current resistance and reach $0.5.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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