$ADA Network Weakness Puts $0.40 and $0.35 levels in Focus - The Crypto Basic Analytics

Cardano (ADA) is experiencing a minor recovery, hinting at a potential bullish trend. With a positive sentiment among 72% of the community, ADA has surged 8.14% in the past week, indicating growing bullish momentum. On the 4-hour chart, Cardano has rebounded from the $0.29 support level, forming a support trendline and showing a 25% price increase over the last three weeks. The bullish run has resulted in positive crossovers of several EMAs, except for the 100- and 200-day EMAs. Despite recent pullbacks, a morning star pattern at the 200-day EMA and a positive MACD crossover suggest an increased chance of a breakout rally.

However, Cardano's network growth remains weak amid a volatile market. Daily active addresses have decreased significantly, from 47,930 to 20,120 year-to-date, and transaction volumes have also declined. This decrease in network activity raises concerns about the sustainability of ADA's uptrend. While the derivatives market signals potential price recovery, a lasting bullish trend will depend on improvements in the network's underlying metrics. Key resistance levels to watch are $0.383 and $0.40, while support levels are at $0.36, $0.353, and $0.32.