Cardano’s (ADA) Trading Volume Surpasses $500 Million, Signaling Potential Bullish Reversal
In a remarkable turn of events, Cardano’s (ADA) on-chain activities have experienced a significant resurgence, with its 24-hour trading volume soaring past the $550 million mark. This surge in trading volume has had a positive impact on the price performance of ADA, which has seen a 3% increase in the last 24 hours and a 2% rise in the last seven days, bringing the asset to trade at $0.46.
This development has sparked a glimmer of hope for a bullish reversal and extension, after the asset had been on a downward trajectory marked by lower lows and lower highs since March 15. Analysts have been closely monitoring this market situation, which was previously considered a bearish trend lasting for over a month.
Digging deeper, the Chaikin Money Flow (CMF) for Cardano has surged to 0.6, indicating a substantial increase in investors’ interest and money inflow into the asset. Additionally, the Relative Strength Index (RSI) has moved into the bullish zone, aligning with the positive performance of the market cap and the fully diluted market cap.
Furthermore, reports from various sources, including IntoTheBlock, have confirmed these positive indicators and revealed the aggressive accumulation of ADA by whales over the past few days. On April 29, it was reported that the asset’s transaction volume had exceeded $100,000, with the average daily volume of the transactions reaching almost $14 billion.
Interestingly, the Cardano whales have been particularly active, with an average large transaction volume of $13.84 billion per day in the last 7 days. This figure is a third of Bitcoin’s current volume, 5 times as much as Litecoin’s volume, and over 16 times that of Dogecoin.
While large transactions can represent both buying and selling activities, an on-chain analytics platform, Santiment, has reported a potential bullish signal. According to their data, there has been an increasing accumulation of ADA among large holders, specifically, addresses containing between 100,000 and 100 million ADA.
To further analyze the price behavior, market analyst Cobra Vanguard has observed an expanding price channel that has been trading since the beginning of the year. This pattern is usually marked by higher highs and lower lows, indicating continued price volatility. According to his assessment, the first targeted resistance is $0.52, and if successfully breached, the asset could continue to $0.57, $0.61, and $0.67, with the ultimate price target being $0.77.
Renowned analyst Ali Martinez has also observed a bullish signal on the ADA’s daily chart, predicting a one-to-four-day daily candle rebound. This could potentially signal the end of the correction phase, coinciding with a Crypto News Flash report suggesting that the asset could hit $45 by 2030.
In conclusion, the surge in Cardano’s (ADA) trading volume, the positive on-chain indicators, and the bullish signals from various analysts have collectively painted a promising outlook for the asset. While the road ahead may still be volatile, the current market dynamics suggest the possibility of a bullish reversal and extension in the near future.