In Bitcoin (BTC) and other major cryptocurrencies, a battle ensues between bulls and bears, with bulls striving for price increases while bears attempt to drive the market down. Despite these conflicting forces, the situation may be looking more favorable for Cardano (ADA). Although ADA experienced a minor drop on the daily charts, its positive performance on the weekly charts hints at the potential for a bullish run.
What Do Analysts Say about ADA?
According to data from CoinMarketCap, ADA has seen a 6% rise over the last week. However, the daily chart turned negative as BTC fell below $61,000 once again. Currently, ADA’s market cap stands at $14.5 billion, and it is trading at $0.4059. The trading volume also surged, reaching $329 million after a 25% increase in the past 24 hours.
IntoTheBlock data reveals that only 31% of ADA investors were profitable at the time of writing. Renowned market analyst World of Charts commented positively on ADA, noting that it has been moving within a specific formation since February and currently has breakout potential. If realized, ADA could see a return to $0.80.
Which Factors Could Influence ADA’s Future?
On-chain data also offers crucial insights. Santiment data indicated that ADA’s MVRV ratio has turned positive, which could be a bullish signal. Furthermore, ADA’s network speed increased as of June 30, indicating more frequent usage of the network. An increase in confidence towards ADA could also significantly impact its price.
Key Inferences for Investors
– Only 31% of ADA investors are currently profitable.
– ADA’s market cap is $14.5 billion.
– A breakout could see ADA returning to $0.80.
– Increased network speed and usage could drive further price gains.
– The MVRV ratio turning positive is a bullish sign.
The Chaikin Money Flow (CMF), which measures the capital entering Cardano (ADA), appeared positive, suggesting the possibility of future price increases. However, the drop in the Relative Strength Index (RSI) raises concerns. Another factor to watch is the intersection of candles with the upper regions of the Bollinger Bands, which could signal a potential market correction.
On the downside, if ADA experiences a drop, the $0.37 level with its high liquidity pool could be revisited. Conversely, if Bitcoin rallies and the overall market rises, ADA aims to reach $0.80 by July.