After the completion of Bitcoin halving, the world’s 10th biggest cryptocurrency, 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 turning bullish following the formation of bullish divergence at the demand zone.
Whales record daily transaction volume
According to an on-chain analytic firm, IntoTheBlock, following the price drop, Cardano whales waves, with an average daily transaction volume of $13.84 billion over the past week. This massive average daily transaction volume is 1/3 of Bitcoin’s volume, 5 times that of Litecoin, and more than 16 times that of Dogecoin. This clearly highlights investors’ as well as retailers’ interest in Cardano (ADA), and they might be taking advantage of the recent price drop.
As of writing, Cardano (ADA) is trading near $0.45, and in the last 24 hours, it experienced a 1% upside momentum, also making an intraday high of $0.46. If we look at ADA’s performance over a longer period, in the last 7 days it experienced a price fall of over 4%, and during this period, it also made a low of $0.42. Whereas, in the last 30 days, ADA experienced a 24% price drop due to several uncertainties.
Cardano (ADA) technical analysis and key levels
According to expert technical analysis, Cardano (ADA) is currently bearish as it is trading below the 200 EMA (Exponential Moving Average). However, the ADA’s daily time frame chart seems to be bullish, and there is a high possibility that prices might increase in the coming days.
The reason behind this speculation is the formation of a bullish divergence at the demand zone near the $0.45 level. Another bullish reason is the RSI (Relative Strength Index) value, which is currently below 40, indicating ADA is in oversold condition.
If the current market sentiment changes slightly, then there is a high chance that ADA may hit the $0.52 level. Further, if ADA sustains above the $0.52 level, then it may hit $0.62 and above. On the other hand, if ADA falls and on the daily time frame it closes below the $0.42 level, then there is a high chance that we will witness a massive fall in ADA.
