Cardano experienced a significant decline in price during the first half of April 2024, dropping by 38% from $0.65 to a low of $0.40. However, recent on-chain data suggests that ADA bull traders are now implementing strategic orders that could potentially reverse these losses in the second half of the month.
During April 2024, Cardano’s price has been on a wild ride. It started the month at $0.65, but due to the market crash, it plummeted to $0.40 on April 13, marking its lowest point since December 2023.
Following the Bitcoin halving, cryptocurrency investors have been putting more buying pressure on high-cap altcoins. This trend can be seen with Solana and Ethereum, which have successfully reclaimed key resistance levels at $150 and $3,200, respectively. Now, it seems that Cardano’s price is on the verge of a similar breakout.
At the time of writing, Cardano is trading at $0.50, showing a rebound of 29.9% since the April 13 dip. However, when analyzing the current order flow on major exchanges, it becomes evident that ADA is poised for another upward move towards the $0.65 milestone.
Looking at IntoTheBlock’s Aggregate Exchange Order Books chart, we can see the level of active buy and sell orders for Cardano across 10 prominent crypto exchanges, including Binance and Coinbase. The chart reveals that Cardano bulls have placed active orders to purchase 240 million ADA at an average price of $0.49. On the other hand, traders have only listed 210 million ADA for sale as of April 24, 2024.
This data indicates that there is currently a surplus market demand of 30 million ADA in the Cardano spot markets. According to the laws of demand, buyers may need to increase their bid prices to fulfill their orders more quickly.
If this scenario unfolds as anticipated, it is likely that ADA’s price will establish a strong support level above $0.50 and potentially move towards the $0.60 level. Bulls are aiming to recover from the losses incurred in the first half of April.
It is important to note that this content is purely informational and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic assumes no responsibility for any financial losses incurred.
