After a pause in the Fed’s interest rate increases, Bitcoin’s price has experienced a notable recovery from its $40,000 low, and it’s currently aiming to maintain this upward momentum after the recent crash. Concurrently, leading altcoins are witnessing a surge in buying interest, with Cardano’s price climbing to its highest level in 17 months. Notably, the price of ADA has the potential for further growth as its support strengthens, hinting at a possible trend toward $0.8.
Cardano Slaps Bearish Positions
The volatility of Cardano (ADA) continues its upward trend, triggered by a growing sentiment of buying among traders, currently reflected in a “greed” index score of 72. Recent data from Coinglass indicates that ADA’s sharp price increase from $0.51 to a high of $0.68 triggered a short liquidation close to $4.7 million, which in turn has strengthened its support levels.
Analysis from IntoTheBlock shows that approximately 400,000 to 500,000 addresses are maintaining each support level around ADA’s current price. Notably, a comparatively smaller group of around 133,000 addresses hold ADA within the $0.64 to $0.84 range. With support levels gaining strength over resistance, ADA’s price trend appears set to maintain its current trend and potentially reach $0.84, likely without major corrections.
Cardano is making milestones in the DeFi sector. Recent data from DeFiLlama reveals that the total value locked (TVL) in Cardano-based projects has soared to over $443 million. This marks a big increase from the previous high of $330 million recorded in April. A notable portion of this growth has occurred in the last week, with key projects like the lending protocol Indigo and the on-chain exchange Minswap witnessing their TVLs rise by over 50%, reaching nearly $100 million each.
However, the ADA token is set to undergo a slight correction as long/short ratio drops below 1. Currently, 52% of positions are betting on a decline in ADA’s price, while 48% are maintaining long positions.
What’s Next For ADA Price?
Cardano is currently in a phase of stabilizing its recent gains as it faced rejection near $0.68-$0.69. However, bulls hold the buying momentum as they defend a decline below the EMA20 trend line.
The upward trend of the moving averages, combined with the Relative Strength Index (RSI) being in the overbought territory, suggests that the momentum is likely leaning towards further upward movement with minor corrections. The bulls are expected to make another attempt to push the price beyond $0.69. Should they succeed, the ADA price may climb to a high of $0.89, where it can face bearish domination.
Conversely, for bears to prevent this upward trend, they would need to pull the price down below $0.51, challenging the significant support level at the 20-day EMA. In that case, ADA price might consolidate near $0.33.
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