#cardano Price Forecast: This $10M Signal Could Drive ADA above $0.50
Cardano's price surge of 15% in the initial three days of May 2024 encountered a roadblock at the psychological resistance level of $0.45. Vital market data sheds light on the prevailing sentiment among ADA traders.
ADA Price Rally Meets Resistance at $0.45, Trails Market Average
- The onset of May witnessed a resurgence in the #CryptoMarket , with altcoins collectively gaining $142 billion in market capitalization over the past week.
- Initially, ADA experienced a robust rally of 15%, soaring from $0.42 to $0.48. However, the failure to breach the crucial $0.50 mark led to a retracement, with ADA prices settling around $0.45 at the time of writing on May 7.
- ADA's monthly performance indicates a 7.7% increase, but it lags behind the TOTAL2 chart, which shows a 15% boost in the overall altcoin market for May 2024.
Speculative Traders Bet on ADA Breakout with $10M Investment
- Despite ADA's relative underperformance amid bullish sentiment in the altcoin market, strategic traders have been observed making bullish wagers on ADA.
- Coinglass' Open Interest metric for ADA surged from $205.7 million on May 1 to $216.2 million on May 7, aligning with ADA's 7% price growth during the week.
- Persistent growth in open interest during an uptrend indicates that the majority of ADA holders are increasing their bets in anticipation of amplified gains when spot prices surge.
ADA Price Forecast: Aim for $0.50 Retest
- Despite ADA's current price of $0.45, down 8% from the monthly peak, insights from the $10.5 million surge in open interest suggest a potential retest of $0.50 in May 2024.
- Analyzing ADA's daily chart, #Bulls face strong resistance at the 20-day SMA around $0.47. Surpassing this level may lead ADA to break $0.50 for the first time since April 23.
In case of a bearish reversal, the $0.43 buy wall may offer interim support, as indicated by the lower-limit Bollinger band.
Source - thecryptobasic.com
