ADA’s Price: Cardano’s Makes 8% in 3 Days – Is ADA Rebound Possible?
It appears that Cardano (ADA) may be entering a period of resurgence, with a notable 8.38% price surge over the last three days while Bitcoin remained within the $58,000 to $61,000 range. This suggests that developments in the Cardano network are beginning to influence its price, particularly in comparison to other high-value coins within underperforming chains. Although ADA briefly dropped from the top 10, there is potential for the asset to regain its status if current price trends persist.
ADA Exchange Netflows
Investor confidence in Cardano is evident in ADA exchange netflows, and the success of Cardano’s Hydra has garnered substantial attention within the crypto community. The positive sentiment is reflected in the uptick in ADA price, which has increased by 3.2% over the last 24 hours to reach $0.3566.
Notably, Cardano exchange netflows indicate bullish investor sentiment, with a significant negative netflow of $5.73 million worth of ADA on August 20. This withdrawal event, the largest since the market crash on August 5, signifies investors’ inclination to hold onto their coins in anticipation of higher prices.
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ADA Open Interest (OI)
Furthermore, ADA open interest (OI) has increased by 5% over the last 24 hours, indicating that futures traders are opening long positions, further bolstering the bullish outlook. These positive network developments, coupled with optimistic investor sentiment, could potentially ignite a significant rally in Cardano’s price, with expectations for higher highs in the near future.
ADA’s Price Action and Technical Analysis
From a technical analysis standpoint, ADA’s price action recently broke out from a descending wedge pattern on August 20, signalling a potential bullish reversal and the start of a new uptrend. Key resistance levels to monitor are at $0.3612, coinciding with the 200-day EMA, and $0.4054. Conversely, the previous resistance near $0.3480 now serves as a support level, offering potential buying opportunities in the event of a price pullback.
Despite the breakout, ADA’s price remains below a critical level, suggesting a prevailing bearish trend until it is reclaimed. However, the MACD histogram indicates increasing positive momentum, with the MACD line crossing above the signal line – confirming the bullish reversal and supporting the continuation of the upward movement in price.
Final Thought
Should ADA’s price successfully breach and maintain levels above $0.3712, a more sustained upward move could be signaled, with longer-term positions targeting higher resistance levels around $0.4500. Conversely, failure to hold above $0.3480 may indicate market weakness and potential downside, necessitating a reevaluation of long positions and consideration of further downside to $0.3300 and $0.3222.
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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.
