- Cardano’s on-chain metrics showed a buy signal.
- A short-term uptrend could be established, with the $0.43 resistance zone as a take-profit zone.
As a seasoned analyst with years of experience under my belt, I find myself intrigued by Cardano’s [ADA] current situation. While the technical indicators are still painting a bearish picture, the on-chain metrics seem to be whispering a different tale – one that hints at a potential recovery in the near future.
On a daily basis, the price of Cardano (ADA) was following a downward pattern and hovered slightly below the potential resistance point at approximately $0.355. Technically, the charts suggested a bearish outlook.
According to AMBCrypto’s examination of key data points, the outlook seems brighter for those anticipating a market uptrend. Is it possible that the rebound might occur as early as August, or could patience be required for several additional weeks from long-term investors?
Cardano was trying to set a higher low
Over the recent days, the OBV (On-Balance Volume) has stayed relatively unchanged following a significant decline during the initial week of August. This indicates that neither side – buyers nor sellers – has gained decisive control in the market yet. The daily Relative Strength Index (RSI) stands at 40, with the trend continuing to lean towards bears.
Working together, they demonstrated that the inclination was predominantly bearish. However, the market trends hint at a potential recovery for the bulls. After dropping below $0.3, Cardano (ADA) has steadily risen.
Over the coming weeks, there’s potential for a bullish pattern to develop on lower timeframes, marked by an increase of higher lows and higher highs if it surpasses the $0.355 barrier. However, in the daily chart, the recent peak at $0.429 still stands as a significant hurdle to overcome.
Network activity sparks more hope
In simpler terms, for the past 30 days, the Market Value to Real Value (MVRV) of ADA has been lower than its cost, indicating it might be undervalued. However, the average age of these coins is now rising, suggesting more are being held, a sign known as a “buy signal.” This means that ADA could potentially be a good investment at its current price.
Read Cardano’s [ADA] Price Prediction 2024-25
1. Over mid-July, the number of daily active addresses increased significantly. It’s possible that the surge in activity on the 5th of August was due to panicked selling. Additionally, an increase in activity occurred on the 8th of August as prices began to rise.
If the activity consistently shows comparable figures, it might indicate growing interest and potential escalation in speculation and demand for the token.
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2024-08-11 20:08