Cardano Price Surges 8% In 3 Days, Is ADA Staging a Comeback?

by

As a seasoned crypto investor with years of experience navigating the volatile digital asset market, I find myself increasingly optimistic about Cardano (ADA) as the price surges and its network developments begin to outshine other high-performing chains. The recent surge of 8.38% in three days, while Bitcoin bounces between $58,000 and $61,000, is a clear sign that ADA’s price action is being driven by its own merits, not just market sentiment.

Cardano price may be staging a comeback, as the price has already surged 8.38% in the last three days, all while the Bitcoin price bounced between $58,000 and $61,000. This data reveals that the Cardano network developments have begun to impact price, especially compared with other high-priced coins belonging to relatively low-performing chains. ADA dropped from the top 10 and subsequently lost its 11th spot for Tron, but if price action continues like this, the asset may jump back into the top cream.

Exchange Netflows Reveal Future of Cardano Price

1. The faith investors have in Cardano is on the rise, evident in the ADA exchange transaction volumes. However, prior to this, it’s worth noting that Cardano’s Hydra system has been performing better than Bitcoin’s Lightning network, based on recent data from the Hydra DOOM game at the RareEvo blockchain gathering.

Interesting Tidbit: It took approximately three days for Hydra to process an equivalent number of transactions to what the Lightning Network accomplished in roughly 460 days.

The average TPS on Hydra was 350.

The average TPS of routed transactions on the Lightning Network is 2.5.#Cardano #Bitcoin

— Cardano YOD₳ (@JaromirTesar) August 20, 2024

Due to the success of Hydra, Cardano has been receiving significant attention within the cryptocurrency market, and many traders are leveraging this excitement to cash in on their transactions.

Over the past day, the value of Cardano has risen by approximately 3.2%, currently standing at $0.3566. This growth brings it close to a significant milestone in its pricing trend.

During this period, the flow of transactions on Cardano exchanges indicates a positive outlook among investors, as evidenced by a net loss of approximately $5.73 million in ADA on August 20, according to Coinglass data.

Cardano Price Surges 8% In 3 Days, Is ADA Staging a Comeback?

Based on my years of investing experience, I believe that this recent massive withdrawal from the market is a strong indication that investors are holding onto their coins in expectation of price increases. After all, it was just a few months ago when we witnessed a significant market crash on August 5, and the fact that such a large amount of capital is being withdrawn now suggests that investors have learned from past mistakes and are opting to wait for better opportunities instead of rushing into trades during times of panic. As someone who has seen multiple market cycles, I can attest to the fact that patience often pays off in the long run when it comes to investing, and I would encourage others to follow suit and hold on to their coins if they believe in their potential for growth.

Furthermore, the open interest (OI) associated with the ADA on the futures market grew by 5% during the previous 24 hours. This increase, combined with the rising price trend, suggests that more traders are opting to go long, a sign that the market may be bullish.

Cardano Price Surges 8% In 3 Days, Is ADA Staging a Comeback?

In simpler terms, the growth in the network and the enthusiasm from investors suggests a strong potential for significant price increases for Cardano. It’s anticipated that its value will reach new highs shortly.

ADA Price Analysis: $0.36 Marks The Last Stand

On August 20th, the pattern of ADA‘s price movements broke free from a downward-sloping triangle, indicating a potential bullish turnaround. This hints at the possibility of a fresh upward trend emerging.

It’s possible that ADA may encounter strong opposition at approximately $0.3612, a point where it aligns with the 200-day Exponential Moving Average (EMA). Should it surpass this barrier, further resistance can be expected around $0.4054. Interestingly, the level previously acting as resistance near $0.3480 has now transformed into potential support. If the price decreases, this support level could present attractive buying opportunities.

Currently, the cost stays under the 200 Exponential Moving Average (represented by the black line). This suggests that even though a breakout has happened, the dominant long-term trend continues to be downwards, unless this level is regained.

The MACD graph indicates a growing optimistic trend, as the MACD line (depicted in blue) has moved above the signal line (shown in orange). This strengthens the indication of a bullish shift, which could mean that the positive trend will persist, potentially leading to further advancements.

Should the price of Cardano surpass and maintain itself above its 200 Exponential Moving Average (EMA) approximately at $0.3712, it might indicate a prolonged upward trend. In such a scenario, investors may consider longer-term strategies aiming for higher resistance levels like $0.4500.

Cardano Price Surges 8% In 3 Days, Is ADA Staging a Comeback?

If the value of ADA doesn’t sustain above $0.3480, it might indicate a weakening market and lead to additional drops, contradicting the optimistic outlook. In such a case, you might want to consider closing your long positions and reevaluate for potential declines towards $0.3300 and $0.3222.

Read More

2024-08-21 09:24