Cardano is possibly doing everything in its power to mark a bullish run. However, the prevailing sentiments are not exactly doing wonders for any existing crypto at the moment. Bitcoin, the dominant token, is in a downward trend with the correction tag. Ether is down, too, and ADA is pretty much just another crypto trembling on the trading charts.
That said, two major factors could help ADA bounce back to its peak form: the confidence of investors and a surge in buying.
Both factors look to converge at a certain point; however, there is a slight distinction between them. Firstly, a shift to a broader time window better reflects the confidence of investors. Most of the short-term traders have either transitioned to the next best phase (medium-term) or have exchanged the values to showcase that specific transition. Short-term traders tend to hold onto their portfolios for a month. Medium-term traders, on the other hand, hold on for a year.
Simply put, there are sentiments to retain the ADA for a longer time. This marks a step away from selling pressure, which would have otherwise triggered a downward trend.
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Second, there is a surge in buying activity. Many traders recognize that there could be something big with ADA. Buying the dip is a new norm for ADA, with the value having dropped to $0.4655 at the time of writing this article. This is evident from its 30-day MVRV, which is at -11%, prompting buying activities. The current phase has been defined as an opportunity zone for anyone looking to accumulate.
The upper trend is at $0.49; failing to surpass that milestone kickstarts a descending channel. Needless to say, volatility can still contribute to a 25% rise. The closest resistance levels are at $0.62 and $0.66. ADA will drive the rally depending on how much investors are willing to put their confidence in the community and if the buying activity rises any further.
The confidence of investors remains a priority. ADA has lost the support at $0.47 and is now testing at $0.40. Cardano will likely push itself for a downward correction. ADA price prediction has placed the token at $0.97 for an evaluation at the end of the year. So, a surge could be on the way. It is also safe to assume that Cardano will successfully test the lowest range on the charts.
Bitcoin is potentially in the correction phase, with a listed value of $63,577.97, down by 4.17% in the last 24 hours. ADA is down by 6.20% during the same time window. However, it is up by 4.39% in the last 7 days and 23.20% in the last 365 days.
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The bullish breakout of Cardano’s ADA continues to depend heavily on investors’ sentiments.
