Cardano started the second quarter of 2023 with a sharp rally that saw the ADA price reach $0.45 for the first time in 7 months. Despite the recent bounce in the broader altcoin markets, ADA has remained above $0.40 in each of the last 10 trading days. With multiple on-chain gauges flashing green signals, is ADA on the verge of another hack?
Cardano is among the best performing altcoins in the top 20 global rankings of cryptocurrency market capitalization in 2023. In February, the Cardano trading system saw an influx of whale investors after the launch of the DJED stablecoin. On-chain data indicates that the continued rise in whale activity is beginning to translate into increased demand for ADA. Is Cardano price hitting new highs?
Cardano experiences explosive demand
Extracting data-driven insights from IntoTheBlock’s stock market depth, Cardano appears to be on the verge of an upward price breakout. The depth of the exchange market summarizes the total volume of market orders placed by traders across the various exchanges.
As it stands, investors placed orders to buy ADA 67 million, while open sell orders amounted to about 52 million.
As things stand, the demand for ADA around current prices far outweighs the volume of coins offered for sale. This means that stockholders can take advantage of the massive demand to drive ADA rates higher in the coming days.
Cardano is flying under the radar
In another bullish sign, Cardano’s weighted sentiment has declined by more than 90% since the end of March. This means that Cardano’s recent price performance appears to be flying under the radar of many cryptocurrency enthusiasts and stakeholders.
Weighted Sentiment assesses public perception of the market surrounding the project by tracking the ratio of positive to negative mentions across crypto-related social media channels. Between March 22nd and April 20th, Cardano’s trust ratio decreased by 98%, from 4.21 to 0.08.
When weighted sentiment trends consistently approach zero, it indicates a certain level of fear, uncertainty, and doubt (FUD) among investors in the ecosystem. This means that more investors can accumulate and increase demand once FUD clears,
In short, the low-weight sentiment means that savvy investors might consider this perfect timing to buy ADA. If this adds to the already imbalanced order books on the exchanges, the Cardano bulls could push the price higher.
ADA Price Prediction: Time to break $0.50
Cardano (ADA) price is showing strong bullish momentum, and the global income/loss data (GIOM) indicates that a break above the $0.43 resistance is imminent. According to data provided by IntoTheBlock, 118,000 addresses hold 1.71 billion ex-ADA coins with a maximum price of $0.43. They can take some profits once the price approaches $0.43 and places 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 can break through this level, they can expect an even bigger price increase.
On the downside, the initial support level is currently at $0.40, with 110,000 addresses holding 1.67 billion ADAs at an average price of $0.40.
If not, the long-term support level would be stronger, with 420k addresses containing 4.94 billion ADA coins at an average price of $0.33.
But given the current bullish momentum, it looks likely that Cardano (ADA) will break above the $0.43 resistance soon and head towards the $0.50 price point based on these on-chain metrics mentioned above.
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.