The crypto market has been volatile in recent months, with many major coins experiencing significant price swings. One altcoin that has caught the attention of traders is Cardano (ADA), which has seen a price rebound in the past 24 hours. According to the latest market data, Cardano is currently trading at $0.5906, up 1.40% in the last 24 hours. However, the broader picture tells a different story, with ADA down 20.16% over the past month and 9.29% over the past week.
Cardano Data Chart: CoinMarketCap
Despite the recent bearish trend, Cardano’s market cap remains impressive, sitting at over $21 billion. The trading volume for ADA in the past 24 hours stands at $254 million. Its circulating supply is 35,598,653,160 ADA, representing 79.11% of the total supply of 36,771,024,608 ADA and the max supply of t 45 billion ADA.
ADA Technical Analysis
Cardano has been on a bearish run since hitting a high of $0.8102 on March 14th, accounting for over a 20% drop in the past month. However, the bears seem to have lost momentum after hitting a previous low around the $0.5690 zone, where the price faced rejection and retraced to a resistance level around the $0.6820 zone. The weekly candle for ADA is still bearish but has faced rejection at a demand zone, indicating potential for a bullish reversal.
On the daily chart, Cardano is currently trading bullish, having cleared an Equal Low (EQL) liquidity and a small fair value gap between the equal lows and the demand zone. The price reacted positively to this demand zone, opening at $0.5840 today, April 7th, 2024 and reaching a low of $0.5818 before creating new intraday highs.
ADAUSD Daily Chart: TradingView
According to the Relative Strength Index (RSI), which currently reads 42.04, ADA has room for further bullish pressure. If the resistance level at $0.6850 is breached, prices could continue their momentum and test the recent high of $0.8102. However, it’s essential to note that if the bears regain control, prices could potentially drop to the $0.4502 zone.
On the 4-hour chart, the equal lows at $0.5701 are clearly visible, along with the fair value gap lying below the lows, which was filled today, prompting the price reaction and the subsequent bullish momentum.
ADA’s underlying fundamentals also make it an attractive long-term investment, as quoted from a recent tweet. Firstly, ADA has a scarce and disinflationary monetary policy, with its supply remaining unchanged since 2017, providing a hedge against inflation. Secondly, the Cardano network is well-distributed and decentralized, ensuring no single entity has control over the network and also holders of ADA can earn rewards through staking, earning a share of the transaction fees and newly minted coins.
Leave ALL narratives aside, some reasons to own ADA are
– Scarce and disinflationary monetary policy, unchanged supply since 2017
– Well distributed and decentralised
– Earns you emissions and fees
– Voting rights and control over the largest decentralised treasury in crypto
— ADA whale (@cardano_whale) April 7, 2024
Also, ADA holders have voting rights and control over Cardano’s decentralized treasury, the largest in the cryptocurrency space. As the crypto market matures, Cardano stands out as a significant player, combining strong technical prospects with robust fundamentals, making it a compelling investment option.
