- Cardano’s recent rally has stalled, with ADA struggling to break the $0.45 resistance level.
- Analysts predict a potential breakout for Cardano if it surpasses the $0.45 resistance, with some forecasts suggesting a massive price increase.
Cardano’s recent rally encountered a significant hurdle as ADA struggled to surpass the $0.45 resistance level. Despite a 40% surge over the past two weeks, the cryptocurrency’s price remains below this critical threshold.
DEX Volumes Surge While Price Lags Behind
Cardano experienced substantial gains alongside the broader market upswing since July 5th. However, the last 72 hours have revealed a more nuanced situation. While Cardano’s decentralized exchange (DEX) volumes have soared, surpassing 50 million ADA this week, its price has stubbornly remained below $0.45.
This increase in DEX activity indicates a growing interest in Cardano’s decentralized finance (DeFi) ecosystem. The surge in trading volume on DEX platforms suggests that investors are increasingly engaging with Cardano’s DeFi offerings. This development bodes well for the network’s long-term health, as increased usage can drive further innovation and adoption.
However, despite the positive signs from DEX volumes, other on-chain metrics present a more cautious picture. The number of daily active addresses has declined, and transaction volumes have dropped.
Despite the recent price correction, there is a prevailing sense of optimism regarding Cardano’s long-term prospects. Cardano co-founder Charles Hoskinson remains confident in the network’s potential, and speculation about the approval of a Cardano ETF could further bolster this optimism.
Analyst Predicts Breakout After Sideways Consolidation
Crypto analyst Sssebi recently shared insights on X, suggesting that ADA is on the verge of a significant price surge after a period of sideways consolidation. According to Sssebi, Cardano has been consolidating sideways, a common precursor to major movements in the cryptocurrency market. He identified the $0.45 level as a critical resistance point that has proved more challenging than expected.
The analyst believes that once this level is breached, Cardano could experience a rapid price increase, potentially reaching $0.50 and beyond. This analysis has resonated with the crypto community, which remains optimistic aboutADA’s prospects. The anticipation of crossing the $0.45 mark is seen as pivotal, potentially unlocking higher valuations and attracting increased trading activity and attention.
TradingView Analyst Forecasts Massive Price Surge
A well-regarded analyst on TradingView predicts a significant surge for Cardano (ADA), suggesting its price could rise over 3,000%, potentially exceeding $13. This projection comes from the seasoned market observer behind the BasicTradingTV account, who bases the optimistic forecast on historical patterns and technical analysis.
Cardano’s price movements have exhibited distinct cyclical patterns. The analyst highlighted ADA’s historical surges followed by steep corrections. Notably, ADA reached its first cycle high of $0.3885 in May 2018, followed by a sharp decline to $0.0391 in December 2018. This pattern of significant ups and downs has been a recurring theme in Cardano’s price history.
In a detailed analysis of ADA’s monthly chart, the analyst pointed out a major support level at $0.03, which Cardano retested twice. After establishing this robust support, ADA broke through a key resistance trendline, leading to an impressive 5,000% rally. The next cycle saw ADA peak again, followed by a correction that brought the price down to around $0.25. From this support level, ADA embarked on a 250% rally.
Recommended for you:
No spam, no lies, only insights. You can unsubscribe at any time.
Credit: Source link
