Cardano price prediction: ADA experienced a promising upturn on January 8, suggesting a potential reversal in its recent downtrend. However, this initial gain failed to sustain, and the asset did not achieve a significant breakout. Since reaching its yearly high on December 14, 2023, Cardano has been trapped within a corrective pattern.
This trend continued with an unsuccessful attempt to break through this barrier on January 11, 2024, leading to a further decline. The last month has seen a growing dominance of bearish momentum, overshadowing brief recovery periods.
Despite these short-term setbacks, Cardano’s performance over the past year has been uplifting with a bullish momentum. The asset has witnessed a substantial increase of over 50% compared to the previous year. This remarkable growth has fostered a sense of optimism among investors and market analysts.
They remain positive about the future, anticipating potential bullish trends. Their confidence is bolstered by Cardano’s resilience amidst the recent market volatility, underlining a strong belief in its long-term potential.
Today’s market update reveals a downward trend in the value of Cardano, mirroring a general dip across the cryptocurrency sector. Cardano price is valued at $0.5111, marking a 2.93% decline in the last day. This decrease reflects the broader bearish sentiment dominating the market at this moment.
Cardano price chart | Tradingview
With a market capitalization of $18 billion, this Altcoin maintains its position within the top ten cryptocurrencies. Over the past 24 hours, the trading volume has increased by 4%, reaching $319 million. This suggests that investor activity is still robust despite the current price challenges. ADA’s trading range in the past week has been relatively narrow, fluctuating between $0.58 and $0.51. Recently, bearish trends have led to breaking below key support levels.
Whale Activity in Cardano Signals Potential Bullish Momentum
In the recent post by IntoTheBlock, a surge in activity among Cardano’s top-tier investors was spotlighted. The study emphasized that these prominent entities consistently engage in substantial trades, averaging around $13 billion in daily transactions. Each of these transactions notably surpasses the $100,000 mark.
Cardano whales have been quite active for the past few months. $13B in large transactions (>$100k) is being settled on Cardano daily on average. A significant amount, if you compare it to Ethereum’s $5B 7-day average. pic.twitter.com/8rjeQZaonU
— IntoTheBlock (@intotheblock) January 18, 2024
Comparatively, IntoTheBlock’s report places Cardano’s transactional volume in stark contrast with Ethereum, the crypto market’s runner-up. Ethereum’s significant transactional activity maintains a 7-day average of nearly $5 billion, markedly less than Cardano’s daily volumes, highlighting the intense and affluent activity within the Cardano network.
Technical Analysis of Cardano Reveals Contrasting Market Trends
The surge of whale activity could propel ADA towards a bullish trend. If the bulls regain control, the first target for the coin could be the resistance level of $0.65. A sustained bullish momentum might push the price of ADA to approach $1 in the near future. Conversely, if the bearish trend persists, ADA may test the support level at $0.5. A further drop to the $0.3 mark could be on the horizon in a more bearish scenario.
Cardano price chart | Tradingview
The daily technical indicators present a mixed market outlook. The Moving Average Convergence Divergence (MACD) demonstrates a bearish trend, with its MACD line and signal line trending below zero. Simultaneously, the Chaikin Money Flow (CMF) indicator resides in negative territory, marked at $-0.08, reinforcing the bearish sentiment. However, several oscillators show a neutral position, hinting at the possibility of a bullish breakout in the near term.
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