Cardano’s (ADA) recent rally has hit a snag, with its price struggling to surpass the $0.45 resistance level despite a 40% surge in the past two weeks. This on-chain data analysis explores the conflicting forces currently impacting ADA’s price.
Mixed Signals: Bullish DEX Volumes vs. Bearish Price Action
Cardano mirrored the broader market upswing, with ADA prices surging since July 5th. However, the past 72 hours reveal a more complex picture. While Cardano’s decentralized exchange (DEX) volumes have skyrocketed, surpassing 50 million ADA this week, the price has remained stubbornly below $0.45.
This surge in DEX activity signifies growing interest in Cardano’s DeFi ecosystem, a promising development for long-term network health. However, a decline in daily active addresses and transactions paints a slightly bearish short-term picture.
Long-Term Optimism: Potential ETF Approval and Network Growth
Despite the recent price correction, Cardano’s long-term outlook remains optimistic. Cardano co-founder Charles Hoskinson’s unwavering belief in its potential, coupled with speculation of a Cardano ETF approval, could ignite a significant bullish wave.
Also Read: Can Cardano (ADA) Moon? 2,124% Price Increase Predicted By 2041
Cardano Price Forecast: A Battle at $0.45
Technically, ADA displays a healthy bullish trend, with higher highs and higher lows. The Parabolic SAR and ALMA indicators further support this bullishness, suggesting potential buying opportunities around the current $0.44 support level.
However, a decisive break above the crucial $0.45 resistance is necessary for continued upward momentum, potentially targeting the next hurdle at $0.50. Conversely, a drop below the $0.36 support, indicated by the Parabolic SAR, could signal a deeper correction.
The RSI (Relative Strength Index) at 55.93 suggests room for further growth, aligning with the overall bullish outlook. However, traders should be cautious of potential RSI divergence, which might indicate weakening momentum.
Cardano’s technical outlook leans bullish, with the potential for significant gains contingent on breaching the $0.45 resistance. The ongoing battle between surging DEX volumes and recent bearish price action will likely determine ADA’s short-term trajectory.
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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