24 February, 2024

Cardano Soars on Massive Buy Orders, Eyes Price Breakout Amidst Bullish Sentiment

2 weeks ago

19 Feb, 2024

  • Cardano (ADA) experiences a 678% bid-ask volume imbalance, indicating a strong bullish sentiment.
  • Analyst Ali Martinez identifies a bullish pattern, suggesting a potential end to ADA’s downtrend if it maintains support above $0.53.
  • ADA’s 10% surge in 24 hours outshines Bitcoin and Ethereum, supported by a massive 121% increase in trading volume.

Cardano (ADA), the eighth-largest cryptocurrency, is experiencing a frenzy of buying activity, with a staggering 678% bid-ask volume imbalance favoring the bulls. This unprecedented surge in buy orders paints a vibrant picture of investor confidence, propelling ADA towards a potential price breakout and a 32% rally to $0.68.

Crypto analyst Ali Martinez identified a bullish descending triangle pattern on the daily chart, suggesting a potential end to the downtrend. If ADA can maintain its position above the crucial $0.53 support level, a breakout towards $0.68 could be imminent.

Source: CoinMarketCap

Cardano’s impressive 10% surge within the last 24 hours stands out against its peers. Bitcoin managed a 2.48% gain, while Ethereum climbed 3.15%. This outperformance is further amplified by a massive 121% increase in trading volume, solidifying the buying pressure behind ADA.

Despite the bullish outlook, some hurdles remain. The Social Dominance metric hints that ADA might not have peaked yet, and the presence of a negative Cumulative Value Delta indicates potential selling pressure.

Cardano’s community boasts a strong foundation of long-term holders, with 23% holding their ADA for over five years. This unwavering commitment highlights investor confidence in the project’s potential.

The upcoming Alonzo hard fork, enabling smart contracts on the Cardano blockchain, is a significant milestone. This, coupled with ongoing development activity and numerous projects in the pipeline, could fuel future adoption and drive the value of ADA tokens.

Recent uptrends signal ADA’s attempt to reclaim lost ground. The 5.3% surge on February 8 was promising, but the flipped support level at $0.6 now acts as resistance. Overcoming this hurdle will require sustained buying pressure and positive momentum.

Cardano recently witnessed a surge in large transactions, with those exceeding $100,000 reaching a staggering $13 billion on a daily average. This impressive figure dwarfs Ethereum’s 7-day average of $5 billion, signifying a significant shift in the transaction landscape between these two prominent blockchain platforms.

Highlighting this development, IntoTheBlock, a well-respected analytics source, tweeted about the robust activity of Cardano “whales,” revealing their daily transactions settled at a substantial $13 billion, surpassing even Ethereum’s cumulative sum across a seven-day period.