The Cardano Effect: $0.60 Price Projection Making Waves for May 2024
ADA Rises 15% as Bulls Pile on 250M Cardano Buy Orders
Cardano (ADA) price witnessed a surge above $0.47 on May 4, which indicates that ADA is set for another leg-up. In April 2024, the crypto market entered a correction phase, which led to a struggle in the momentum of ADA. By the end of April 30, Cardano was trading at a two-week low of $0.43. However, when the crypto market recovery phase began in May, the low price of ADA drew investors towards it, resulting in a rapid climb of 15% from $0.43 on April 30, to reach a daily timeframe peak of $0.47 on May 4.
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During April, the declining traction across the Cardano DeFi ecosystem was the major reason for Cardano’s price struggles. Investors withdrew over 36 million ADA from Cardano-native DeFi protocols, leading to a 35% tailspin in prices. The DeFi scene is yet to recover, and on-chain data trends reveal that swing traders aping in on the overall crypto market rebound this week may be the main catalyst behind ADA’s 15% price bounce.
Cardano (ADA) Price Forecast: Demand Rise Could Spark $0.60 Retest
The current market-depth data indicates that bulls have listed active orders to purchase 251 million ADA at an average price of $0.47, while the bears have only listed 230 million ADA for sale. This effectively creates an excess market demand for 20 million ADA. Following the basic law of demand and supply, when buy orders exceed active sell orders by such a large margin, it increases the likelihood of further price surge as buyers may have to compete for the fewer orders by raising their bids. This explains why Cardano price has surged 15% in the last 3 days.
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If this rare market dynamic remains tilted in the bulls’ favor, investors can anticipate further upside in the days ahead. Cardano price looks set to reclaim the $0.60 milestone in the days ahead considering the current excess demand of over 20 million ADA. However, this lofty target will not be a cakewalk for the bulls as IntoTheBlock’s GIOM data highlights a sell wall looming large at $0.50. If the bulls can scale that sell wall, ADA could advance toward $0.60 before facing a more significant resistance cluster.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
