Cardano faced a significant setback, witnessing a 38% decline from $0.65 to a low of $0.40 in early April 2024. However, recent on-chain data suggests that bullish ADA traders are strategically placing orders, signaling a potential reversal of fortunes in the latter part of the month.
In the second half of April, Cardano experienced a notable rebound, surging by 30% from its April 13 dip. The market turbulence, triggered by a broader crypto crash, drove ADA prices to their lowest point since December 2023.
Following the Bitcoin halving event, there has been a surge in buying activity among crypto investors, particularly in major altcoins like Solana (SOL) and Ethereum (ETH). As these coins reclaimed crucial resistance levels at $150 and $3,200 respectively, Cardano’s price now appears poised for a similar breakout trend.
At present, Cardano is trading at $0.50, reflecting a nearly 30% rebound from its recent low. Analysis of order flow across major exchanges suggests that ADA may be gearing up for further upside potential, possibly targeting the $0.65 mark.
Data from IntoTheBlock’s Aggregate Exchange Order Books indicates a notable discrepancy between buy and sell orders for Cardano. Bulls have placed active orders to purchase 240 million ADA at an average price of $0.49, while only 210 million ADA are available for sale as of April 24, 2024. This excess market demand of 30 million ADA implies potential upward pressure on prices, with buyers likely needing to increase their bid prices to expedite order fulfillment.
Should this trend materialize, Cardano’s price could establish a solid support level above $0.50 and potentially push towards the $0.60 territory, as bullish sentiment aims to recover losses incurred earlier in April.
