New Report: $10M Signal Identifies Cardano’s (ADA) Potential to Surpass $0.50
Cardano’s price has surged by 15% in the first three days of May 2024, but has been struggling to break above the $0.45 resistance level since then. Key market data provides valuable insights into the dominant social sentiment among ADA traders.
ADA Price Rally Stalls at $0.45: Pushing the Limits
The crypto market has recently entered a recovery phase, with the global market capitalization of altcoins experiencing a surge of $142 billion over the past week. However, the ADA price has failed to reclaim the $0.50 milestone, leading to a retracement towards $0.45 as of May 7.
At present, the ADA price has increased by 7.7% for the month, which is underwhelming when compared to the overall performance of all crypto assets excluding Bitcoin (BTC), as captured by the TOTAL2 chart trends. The 15% boost in the overall altcoin market for May 2024 so far, as seen above, reveals ADA’s underperformance despite the dominant positive sentiment surrounding the market.
Read Also: Cardano (ADA) Price Prediction: Can ADA Hit $0.5 or Even $1 This May?
Speculative Traders Bet Another $10m on ADA – Don’t Miss Out!
Strategic traders have been observed placing bullish bets on ADA, given its underperformance. Coinglass’ Open Interest metric provides insights into investors’ participation rate and the direction of their sentiment. ADA’s open interest has increased from $205.7 million on May 1 to $216.2 million at the time of writing on May 7, representing a 6% surge in open interest over the past week, coinciding with a 7% growth in Cardano price.
Exploring the Potential of the $0.50 Retest in Play
When open interest increases persistently during a price uptrend, it suggests that the majority of Cardano holders are placing additional bets in hopes of booking amplified gains when spot prices surge in the days ahead. The $11.5 million surge in open interest indicates that ADA’s price may make another attempt at reclaiming $0.50 in May 2024.
Read Also: Cardano (ADA) Market Update: Navigating Downtrend and Exploring Future Predictions
The Bollinger band indicator on Cardano’s daily price chart shows that bulls face stiff resistance at the 20-day SMA price level at $0.47. Flipping that critical resistance level at $0.47 could set the stage for the ADA price to break above $0.50 for the first time since April 23. However, the $0.43 buy wall could offer short-term support in the event of a bearish price reversal, as depicted by the lower-limit Bollinger band indicator.
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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.
