As a seasoned researcher with over two decades of experience in the crypto space, I have seen countless price surges and corrections. The recent Cardano (ADA) price movement has sparked my interest, particularly due to the rumors of an incoming Pump.fun derivative on the network.
On August 21st, the price of Cardano experienced a significant increase, reaching approximately $0.37. However, it has since been stuck at this level due to bulls being pushed back. Traders are largely uncertain as they weigh whether the excitement has subsided or if that surge was merely the beginning. Amid this uncertainty, discussions about an impending Pump.fun derivative on the Cardano network have arisen within the community. Some speculate that dominating the meme coin sector could provide ADA with the boost needed to reach $0.5.
Cardano Price Prediction: Can a Pump.Fun Derivative Rescue ADA?
The price of Cardano barely moved over the last day. It dropped only 1.1% to $0.3715 and lost two ranks to Tron (TRX) and Dogecoin (DOGE), after briefly entering the top 10. Nevertheless, this is better than a full-fledged bearish reversal.
As the price of Cardano finds it difficult to surpass a substantial barrier, there’s chatter about a Pump.fun derivative being introduced to the ADA network. This could potentially provide the catalyst necessary to boost its price movement.
As a researcher exploring this field, it’s intriguing to note that there are rumblings about three distinct initiatives aiming to deploy a variant of the renowned token-launching platform similar to Solana.
So, we have ANOTHER pump fun derivative coming.
We already have two that are cooking.
One is launching today, and the other is launching sometime after….…
— Opti (@store_optimal) August 22, 2024
Excitement builds for the upcoming debut of Snek.fun, a project by the SNEK team, who are currently the biggest players in the meme coin sector within the Cardano blockchain. However, an official release date has not been announced just yet.
Traders Undecided While Whales Checkout
An examination of transactions on the blockchain suggests a potential downtrend in Cardano’s price and investor behavior. It remains uncertain if this sentiment will shift once the news from Snek.fun is fully absorbed.
According to Santiment’s data, there’s a bearish discrepancy between Cardano’s price and trading volume from August 16th to August 22nd. While ADA‘s price increased, the transaction volume decreased, suggesting that the buying pressure behind the price rise might not be strong enough to sustain it. As a result, there’s a possibility that bears could regain control, potentially causing the price to drop further.
As a researcher, I’ve noticed an interesting pattern in my analysis. The transaction volume handled by whales significantly increased from August 18th to the 22nd, as indicated by data from IntoTheBlock. Furthermore, the netflow of large holders decreased from August 21st to the 22nd, suggesting that these whales might be carefully unloading their assets in a bid to potentially avoid a price drop.
Traders who specialize in futures contracts, much like everyone else, have their own uncertainties about what lies ahead, which can influence their trading activities. Data from Liquidation Map at Coinglass reveals a nearly balanced ratio of Cardano (ADA) Shorts and Longs. Nevertheless, the Short positions hold a slight edge, suggesting that the market’s overall sentiment towards ADA price may lean slightly bearish.
Over the past day, the open interest for ADA has risen by approximately 0.7%, despite a 1.1% decrease in its price. This disparity indicates that traders could be initiating short positions, potentially causing the price to fall even more.
ADA Price Analysis: $0.5 In Sight If It Overcomes This Obstacle
Despite experiencing a temporary increase, the overall trend for ADA price seems to be declining as it currently sits below the 200-day Exponential Moving Average (EMA). The latest candles suggest uncertainty near the 50-day EMA ($0.3773), suggesting that the market is debating between continuing the downtrend or initiating a reversal.
Should the value of Cardano surpass $0.3773, it could potentially reach $0.4368 as its next potential resistance point, marking a roughly 19.74% growth from its present value.
The MACD (Moving Average Convergence Divergence) line remains beneath its signal line, indicating that buying pressure is relatively low and there’s not much bullish strength at the moment. However, the histogram is beginning to move upward, hinting that the downward trend could be weakening. Nevertheless, this doesn’t mean it’s a clear-cut time to buy, as the momentum isn’t yet strong enough for a definitive buy signal.
A CMF value of 0.08 suggests a modest entry of funds, signaling a potentially positive trend. Yet, similar to the MACD, this level isn’t robust enough on its own to definitively signal a major upturn.
If the value of Cardano doesn’t manage to surpass and sustain itself above roughly $0.3773, this could indicate a potential market instability, possibly causing the price to decrease further down to approximately $0.3145. Such a move might contradict the current optimistic investment perspective.
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2024-08-23 06:12