Cardano’s Price Overview
* Cardano’s price hovers around $0.74 on Thursday after a recovery of over 4% so far this week.
* On-chain data hints at a bullish picture as ADA’s stablecoin market cap rises while its bullish bets increase among traders.
* However, Cardano’s dormant wallets’ activity could limit gains.
Current Price Activity
Cardano (ADA) price hovers around $0.74 at the time of writing on Thursday, showing a recovery of over 4% this week. On-chain data hints at a bullish outlook as ADA’s stablecoin market cap has increased and more traders are betting on price rises.
Bullish Bets on Cardano
Coinglass’s long-to-short ratio for Cardano stands at 1.15, the highest in a month, indicating bullish sentiment as more traders anticipate price increases.
ADA long-to-short ratio chart. Source: Coinglass
Another positive indicator is ADA’s rising stablecoin market capitalization, which reached an all-time high of $30.77 million on Monday according to DefiLlama. This growth suggests increasing utility and adoption of Decentralized Finance (DeFi) on Cardano.
ADA’s stablecoin market capitalization chart. Source: DefiLlama
Technical Analysis
Cardano’s price experienced rejection around its 50-day Exponential Moving Average of $0.77 on Wednesday, resulting in a 2.16% decline. This level aligns with the weekly resistance around $0.74, representing a crucial resistance zone.
If ADA breaks above its weekly resistance and closes above $0.77, it could see a rally of 13% to test the next resistance at $0.83.
The Relative Strength Index (RSI) on the daily chart is at 49 and trending upwards, suggesting weakening bearish momentum. However, the RSI needs to surpass 50 to sustain bullish momentum. The Moving Average Convergence Divergence (MACD) indicator also showed a bullish crossover on Tuesday, signaling a potential upward trend.
ADA/USDT daily chart
Despite the optimistic outlook from Cardano’s on-chain metrics and technical analysis, caution is advised due to the Santiment Age Consumed metric, which indicates increased activity in ADA’s dormant wallets. This may raise selling pressure and negatively impact Cardano’s price.
ADA’s Age Consumed chart. Source: Santiment
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