Cardano (ADA) experienced a significant drop in price during the first half of April 2024, falling 38% from $0.65 to a low of $0.40. However, recent on-chain data suggests that ADA bull traders are now strategically placing orders that could potentially reverse these losses in the second half of the month.
The Cardano market has been quite volatile in April 2024. Starting the month at $0.65, the market crash caused ADA prices to plummet to $0.40 on April 13, the lowest it has been since December 2023.
Following the Bitcoin halving, investors in the crypto market have been showing increased interest in high-cap altcoins. This week, altcoins like Solana (SOL) and Ethereum (ETH) have seen a resurgence, reclaiming key resistance levels at $150 and $3,200, respectively. ADA price seems to be on the verge of a similar breakout trend.
Currently, ADA is trading at $0.50, rebounding by 29.9% since the dip on April 13. Looking at the order flow on prominent exchanges, it appears that ADA is poised for another upward movement towards the $0.65 milestone.
The Aggregate Exchange Order Books chart from IntoTheBlock provides insights into the active buy/sell orders for Cardano across 10 major crypto exchanges, including Binance and Coinbase. The chart reveals that Cardano bulls have placed active buy orders for 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 implies that there is currently an excess market demand of 30 million ADA in the Cardano spot markets. According to the laws of demand, buyers may need to raise their bid prices in order to have their orders filled more quickly.
If this scenario unfolds as anticipated, ADA price is likely to find a strong support level above $0.50 and potentially move towards the $0.60 level. Bulls are aiming to recover the losses from the first half of April.
It’s important to note that this article is for informational purposes only and should not be taken as financial advice. The views expressed in this article are solely the author’s opinions and do not represent the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.