Cardano is currently riding on the back of a modest 3.76% gain in the past seven days with the cryptocurrency on its way to the $0.55 level which will define its short-term price trajectory. On-chain data shows that the bulls are working hard in the background to push the crypto toward this price point, as evidenced by the buy orders piling up.
Particularly, Cardano has experienced a surge in buy orders, tipping the bid-ask volume imbalance in the direction of the bulls. With so many buyers and so few sellers, the price of ADA has only one way to go.
At the same time, activity on the Cardano blockchain is exploding but the question remains whether this interest and optimism will continue to drive ADA prices up or whether the rally will run out of steam as some traders take profits.
Buy Orders Tip By 678% In The Way Of The Bulls
On-chain data show that Cardano bulls are currently out in full force, driving a huge imbalance in buy and sell orders that's currently sending the bid volume outpacing ask volume by 678%. This strong imbalance tells the current bullish sentiment among Cardano investors.
The dynamic nature of the battle between buyers and sells means the imbalance can change at any time. If the spread narrows, it could signal that the rally is losing steam and a reversal may be on the horizon.
Cardano currently trading at $0.54 on the daily chart: TradingView.com
However, Cardano seems to be holding on, as indicated by this week's price action. Presently trading at $0.5361, Cardano has shown incredible resilience to continue trading above the $0.50 price level throughout the week.
Price Targets For Cardano (ADA)
ADA is still down in a monthly timeframe, but many crypto analysts are hopeful on the crypto's future price trajectory. The first step in establishing a very bullish run is a break over the psychological price resistance at $0.55 which it has tested in the past 24 hours. Failure to break over this resistance would either mean a continued range trading between $0.55 and $0.50 or a bearish breakout below $0.50.
According to crypto analyst Ali Martinez, ADA might continue consolidating until April before going on a sustained breakout past its current all-time high to reach $8 by January 2025.
For Cardano to maintain this momentum, it is necessary for the cryptocurrency to continue demonstrating robust market fundamentals and meaningful advances within its ecosystem. Despite facing multiple criticisms,
Cardano remains one of the most actively developed blockchains, with a vibrant open-source community. According to founder Charles Hoskinson, Cardano's main hurdle is not technological but human in the aspect of decentralized on-chain governance.
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Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Source: NewsBTC.com
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