Cardano, the popular cryptocurrency, experienced a significant drop in price during April 2024. Starting the month at $0.65, the value of ADA plummeted to $0.40 on April 13, marking its lowest point since December 2023.
However, recent on-chain data suggests that ADA may be on the path to recovery. Following the Bitcoin halving event, investors have shown increased interest in altcoins, leading to a surge in buying pressure. Other major cryptocurrencies like Solana and Ethereum have already reclaimed key resistance levels, and Cardano appears to be following suit.
At the time of writing, Cardano is trading at $0.50, indicating a rebound of 29.9% since the April 13 dip. Looking at the current order flow on major exchanges, it seems that ADA may experience another upward trend towards the $0.65 milestone.
Analyzing the aggregate exchange order books, there is a notable excess market demand for Cardano. Bullish traders have placed active orders to purchase 240 million ADA at an average price of $0.49, while only 210 million ADA are available for sale. This creates a surplus demand of 30 million ADA, suggesting that buyers may need to raise their bid prices to secure their orders quickly.
If this trend continues, it is likely that ADA will establish a strong support base above $0.50 and potentially move towards the $0.60 level. This would help recover the losses incurred in the first half of April.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not liable for any financial losses incurred.