As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I’ve seen more rollercoaster rides than a theme park employee. The Cardano price dive to $0.37 during the U.S. trading session on Monday caught my attention, as it seems to be following Bitcoin’s dip like a shadow. However, upon closer inspection, I noticed some promising signs that could suggest a bullish reversal for ADA.
The cost of Cardano dropped by 2.78% to $0.37 during Monday’s U.S. trading session, mirroring the decline in Bitcoin to $63,500. With many significant altcoins recovering from last week’s surge, this downward trend could indicate a potential recovery or a forthcoming significant correction for Cardano. Will the current momentum be strong enough to drive the price of ADA up to $1, or will sellers be gearing up for another fall?
Cardano Price Rebounds Amid Reversal Pattern and Whale Buying
This year up until 2024, the value of Cardano has underperformed other assets, resulting in a Year-to-Date (YTD) decrease of approximately 37%, with its current trading price at $0.37. Upon closer inspection of the daily chart, there appears to be a descending channel pattern emerging, which is defined by two declining trendlines that are currently influencing the drop in ADA‘s value.
In a stable coin’s market, a chart pattern presents a chance for a turnaround if the price climbs beyond its upper trendline. During the current market upswing, the price of Cardano has climbed over its 20-day Exponential Moving Average, suggesting an early shift in investor sentiment.
If the ongoing purchases continue, the price of ADA could increase by approximately 10%, potentially reaching a level that tests its channel pattern’s resistance. Should this resistance be broken, it would indicate the end of the correction period and could trigger a surge of up to 37% towards $0.5.
Even though the ADA coin has been in a prolonged adjustment period, there’s been significant accumulation of this coin by addresses holding between 1 million and 10 million coins since mid-July. As per Santiment data, this accumulation level has remained relatively steady at approximately 5.72 billion ADA.
This amassment suggests that major actors are either predicting a future price increase and positioning themselves accordingly, or they’re capitalizing on the present prices to expand their holdings.
ADA Price Faces Setback Amid Rising Transaction Costs
Additionally, the price of the Cardano coin has recently attracted market focus due to a sharp increase in its transaction costs. As per data from Messari, the average transaction fee on the Cardano network reached $0.2. This surge in fees is often associated with the increasing popularity of the project, as more users vie for limited network resources.
On the other hand, since Cardano boasts scalability and affordability, managing network expansion while maintaining reasonable transaction prices will be essential. Excessive fees might discourage certain projects from using Cardano, particularly when compared to other blockchain platforms that offer cheaper transaction fees.
It appears that reaching $1 for the Cardano price might be a long-term aspiration rather than a realistic expectation before Q3 concludes.
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2024-08-26 21:01