The anticipated Bitcoin halving has just completed. After that, it is the 10th largest cryptocurrency in the world Cardano (ADA) experienced a price drop of over 17%. However, looking at the current chart of Cardano (ADA) on the daily time frame, it appears that ADA is recovering after a bullish divergence formed in the demand zone.
Whales Broke a Record in Daily Transaction Volume
Following the price drop, Cardano surged with an average daily trading volume of $13.84 billion over the past week, according to on-chain analysis firm IntoTheBlock. This massive average daily trading volume is 1/3 of Bitcoin, 5 times that of Litecoin, and more than 16 times that of Dogecoin. This clearly demonstrates the interest in ADA from investors as well as retailers, benefiting from the recent price drop they could be.
Cardano whales are busy, with an average large transaction volume of $13.84B a day in the last 7 days.
For comparison, this is a third of Bitcoin’s current volume, 5x as much as Litecoin’s volume and over 16x that of Dogecoin! pic.twitter.com/xU2XMoEQbM
NEWS CONTINUES BELOW— IntoTheBlock (@intotheblock) April 29, 2024
ADA is trading around $0.45 at the time of writing. Additionally, it experienced an upward momentum of 1% in the last 24 hours, reaching its intraday high of $0.46. If we look at ADA’s performance over a longer period, it has experienced a price decline of over 4% in the last 7 days, recording a decline of $0.42 during this period. In the last 30 days, ADA has experienced a 24% price decrease due to various uncertainties.
Cardano (ADA) Technical Analysis and Key Levels
According to expert technical analysis, ADA is currently in a downtrend as it is trading below the 200 EMA (Exponential Moving Average). However, the daily time frame chart of ADA appears to be in a bullish trend and there is a high probability that prices will rise in the coming days.
The reason behind this speculation is that a bullish divergence has formed in the demand zone near the $0.45 level. Another bullish reason is the RSI (Relative Strength Index) value, which is currently below 40, indicating that ADA is in an oversold state.
If current market sentiment changes slightly, ADA has a good chance of reaching the $0.52 level. Moreover, if ADA stays above the $0.52 level, it could rally to $0.62 and above. On the other hand, if ADA turns down and closes below the $0.42 level on the daily time frame, there are high chances of witnessing a major decline in ADA.
