Cardano started Q2 2023 with a blistering rally that saw ADA price reach $0.45 for the first time in 7 months. Despite a recent retracement in the broader altcoin markets, ADA has remained above $0.40 in each of the last 10 trading days. With multiple on-chain metrics flashing green signals, is ADA on the verge of another breakout?
Cardano is among the best-performing altcoins in the top 20 global crypto market capitalization rankings in 2023. In February, the Cardano trading ecosystem witnessed an influx of whale investors following the launch of the DJED stablecoin. On-chain data suggests that the sustained spike in whale activity has begun translating into increased demand for ADA. Will Cardano Price soar to new highs?
Cardano Experiences Explosive Demand
Drawing data-driven insights from IntoTheBlock’s Exchange Market Depth, Cardano appears to be on the verge of a bullish price breakout. The Exchange market depth sums up the aggregate volume of market orders traders place across various exchanges.
As things stand, investors have placed orders for 67 million ADA, while the volume of open sell orders stands around 52 million.
As things stand, the demand for ADA around the current prices far outweighs the volume of coins offered for sale. This means that holders can take advantage of the explosive demand to raise ADA prices in the coming days.
Cardano Flying Under the Radar
In another bullish signal, Cardano’s Weighted Sentiment has dwindled by more than 90% since the end of March. This implies that Cardano’s recent price performance appears to be flying under the radar of many crypto enthusiasts and stakeholders.
Weighted Sentiment evaluates the general market perception surrounding a project by tracking the ratio of positive mentions to negatives across crypto-related social media channels. And, between March 22 and April 20, Cardano Weighted Sentiment ratio declined by 98% from 4.21 to 0.08.
When Weighted Sentiment trends persistently near zero, it implies some level of Fear, Uncertainty, and Doubt (FUD) among investors in the ecosytem. This means that more investors could pile on and drive up the demand once the FUD clears,
In Summary, the low weighted sentiment means savvy investors may consider this perfect timing to buy ADA. If this adds to the already lopsided order-books on exchanges, Cardano bulls could push the price higher.
ADA Price Prediction: Time for a $0.50 Breakout
Cardano (ADA) price is exhibiting strong bullish momentum, and the Global In/Out of Money (GIOM) data suggests a breakout above the $0.43 resistance level is imminent. According to data provided by IntoTheBlock, 118,000 addresses have previous 1.71 billion ADA coins at the maximum price of $0.43. They could take some profit once the price approaches $0.43 and put up an initial resistance.
However, the long-term resistance is even higher, with 280,000 addresses holding 3.17 billion ADA coins at an average price of $0.53. If the bulls manage to breach this level, they can expect to see an even more significant price increase.
On the downside, the initial support level is currently at $0.40, with 110,000 addresses holding 1.67 billion ADA coins at an average price of $0.40.
If that does not hold, the long-term support level is even stronger, with 420,000 addresses holding 4.94 billion ADA coins at an average price of $0.33.
But given the current bullish momentum, it seems likely that Cardano (ADA) will break above the $0.43 resistance level soon and head toward the $0.50 price point based on these on-chain metrics already mentioned above.
Disclaimer
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