Cardano: It's a Crypto Rollercoaster Ride, But Is It Headed Up? 🎢

Cardano could hit $2.47, but only if it can break free from the clutches of $1.09 like some kind of crypto escape artist. Houdini, eat your heart out!
Apparently, Cardano’s network is buzzing with activity like a beehive full of caffeinated honeybees.

Cardano [ADA] is currently hanging out at 0.996, a mere 2% bump in the last 24 hours. But don’t let those measly gains fool you, because the trading volumes are down like a sad clown at a birthday party. They’ve shrunk by a whopping 40% to $1.4 billion, which is basically a whisper in the vast, echoing expanse of the cryptocurrency market.

Despite this brief moment of glory, Cardano’s market capitalization has taken a nosedive. It’s down 14% in the past week, a painful reminder that even the best-looking crypto can experience the dreaded “market correction”. The buying pressure is weak, like a tired kitten trying to climb a tree. More volumes are needed, like a shot of espresso for a sleepy crypto enthusiast.

But wait, there’s hope! The weekly chart is hinting at an upcoming rally, like a secret message whispered in the wind.

Long-term trend hints at incoming rally

ADA’s weekly chart is whispering sweet nothings, promising a rally to $2.47 if it follows the script of past price patterns.

After completing an ascending parallel channel last year, ADA is now stuck in a period of consolidation, with resistance at $1.09 acting like a gatekeeper.

This pattern mirrors ADA’s behavior in 2021, where its rally came to a screeching halt after a spectacular rise. It traded in a consolidation phase for weeks, until it broke out and rocketed over 200% to $2.47 within just two weeks.

The Relative Strength Index (RSI) at 62 indicates that ADA is cooling off after being overbought. It’s like a caffeinated squirrel finally settling down for a nap. However, the sellers are still outnumbered by buyers, which suggests that some traders are still holding onto their hope and dreams of a rally.

ADA’s Moving Average Convergence Divergence (MACD) further shows that even with reduced buying volumes, the momentum remains bullish.

Rising network activity could fuel the rally

Activity on the Cardano network is on the rise, like a swarm of bees heading toward a honey pot.

Per Santiment, the daily active addresses on the network reached 50,828 earlier this week, suggesting that the network is getting more popular, or maybe just more people are trading.

However, despite the increasing number of addresses, data from DeFiLlama showed a drop in Cardano’s Total Value Locked (TVL) to $518M. It’s like a party that’s started to wind down, with fewer people showing up to the dance floor.

Short traders dominate the market

Data from Coinglass reveals a surge in short positions, like a swarm of vultures circling a carcass. In fact, the coin’s Long/Short Ratio has dropped to 0.824, the lowest level in over a month.

2025-01-22 17:43

Cardano: It’s a Crypto Rollercoaster Ride, But Is It Headed Up?

Long-term trend hints at incoming rally

Rising network activity could fuel the rally

Short traders dominate the market

Read More