Markets
ADA Trading Volume Reaches $300 Million, What Happens Next?
Cardano price rebounded above $0.45 territory on June 4, after weeks of bearish dominance, recent market trends suggest ADA bottom is reached and bulls could gain a foothold in the coming days.
Cardano price reverses downward trajectory in June
In May 2024, Cardano became one of the worst performing assets in the top 20 market rankings, closing the month with a -12% decline between May 21 and May 31. ADA’s pricing difficulties have been attributed to the negative impact of Ethereum ETF approvals on rival layer 1 networks.
However, while the official launch of the ETF is still in play, investor euphoria has subsided considerably since the start of the month.
The ADA price decline appears to have attracted savvy investors looking to enter the fray at a discount. Since Cardano’s price fell below $0.44 on May 31, demand for ADA has increased significantly.
As the chart above shows, ADA’s price has now jumped 4.4% in the first four days of June, adding over $500 million to its market cap.
Cardano trading volume hits $300 million after weeks of decline
After four consecutive green candles, the bulls have clearly gained a foothold in the Cardano markets. However, a closer look at ADA trading volumes during this uptrend period leaves clues to a much larger price breakout to come.
The Santiment table below shows the dollar value of all transactions involving ADA on a given day.
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As Cardano struggled to find demand during the last week of May 2024, trading activity declined, driving 24-hour volume to a 30-day low of $166 million on June 1. bulls started June 2024 on solid footing.
At the time of writing on June 4, Cardano’s trading volume exceeded $300.63 million, as shown by the blue trendline in the chart above. This reflects a $132 million increase in new demand over the past 4 days.
When trading volume increases significantly after a major reversal in the price trend, it suggests strong interest and market participation.
This often indicates that the new trend may have substantial support and could continue as increasing volume confirms the momentum behind the price movement. Traders and investors view increased volumes as a sign of belief in the new trend, potentially leading to further price increases.
Cardano Price Forecast: Breakout Above $0.50 Imminent?
Cardano price jumped 4% over the past four days as trading volume increased by over $130 million. With the growing bullish momentum in the ADA markets in June 2024, a short-term ADA price breakout above $0.50 could be on the cards.
However, GIOM data from IntoTheBlock identifies the $0.48 territory as the main resistance level to beat in the near term.
As seen above, 231,450 addresses acquired 2.91 billion ADA at an average price of $0.48. Considering they have been holding stocks at a loss for weeks, many of these holders may choose to take early profits.
In this scenario, if ADA price manages to reach this major selling wall at $0.48, it will gain momentum and extend the rally above the $0.50 mark.
But conversely, if the bulls succumb to another correction phase, the $0.44 cluster could provide important support in the near term.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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