Cardano (ADA) price has made several unsuccessful attempts at $0.30 since the SEC labeled ADA a ‘security‘ in June. On-chain data reveals that ADA could offer another buying opportunity in the coming days. But, this time, can the bulls stay firmly in control?
The social sentiment surrounding Cardano has gradually improved over the past month. Yet, the bulls have struggled to break above the $0.30 resistance. Is the ongoing rally another buying opportunity?
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Market Sentiment Surrounding Cardano is Improving
On-chain data shows that Cardano’s Weighted Sentiment slid to an all-time low of -3.01 on June 9 in the aftermath of the SEC lawsuit against Coinbase.
Cardano founder Charles Hoskinson and the dev team have made concerted efforts to address centralization concerns raised by the SEC. In recent weeks, the ADA community has responded positively.
As of July 3, ADA Weighted Sentiment currently sits at -1.11. While the overall outlook is still largely hawkish, it is a 63% improvement compared to the all-time low recorded on June 9.
Weighted Sentiment measures the overall market perception surrounding an asset by comparing the ratio of positive opinions to the negatives.
The chart above shows the optimism surrounding ADA has continued to rise over the past few weeks. While the regulatory concerns are far from settled, strategic investors could interpret this as a safe juncture to enter the market again.
The Bulls are Wrestling Control from the Bears
After weeks in a bearish downtrend, the bulls now appear to wrest control of the market momentum. Albeit a small margin, the aggregate order books of exchanges show that the bulls have now placed more buy orders than market supply.
Currently, the bulls have placed orders to purchase 57.7 million ADA coins. Meanwhile, the traders have only placed 57.1 million ADA coins up for sale.
The Exchange on-chain market depth shows the aggregate buy and sell limit orders placed for an asset across recognized crypto exchanges.
As seen above, the momentum between the buy and sell orders still quite hangs in the balance. As things stand, demand only outpaces supply by a small margin of 600,000 ADA.
However, considering the improvement in general market sentiment, the bulls could take the Cardano buying opportunity and pile on more orders in the coming weeks.
ADA Price Prediction: Too Soon to Target $0.40?
While Cardano has flashed some bullish on-chain signals, it’s still too soon for the bulls to set lofty targets at reclaiming $0.40. This is because Cardano could face significant pushback around $0.32.
At that zone, 421,170 investors that bought 3.44 billion ADA at the average price of $0.32 could book some profit.
However, if the bulls can push aside that resistance, ADA could promptly reclaim $0.35.
Yet, the bears also have a good chance of forcing another downswing if the ADA price drops toward $0.25 again. Although, 96,480 investors that have bought 3.1 billion Cardano at the minimum price of $0.27 could prevent the drop.
But if the support gives way, the ADA price could decline toward $0.25
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