Cardano Price Surges 8% In 3 Days, Is ADA Staging a Comeback?

Cardano price may be staging a comeback, as the price has already surged 8.38% in the last three days, all while the Bitcoin price bounced between $58,000 and $61,000. This data reveals that the Cardano network developments have begun to impact price, especially compared with other high-priced coins belonging to relatively low-performing chains. ADA dropped from the top 10 and subsequently lost its 11th spot for Tron, but if price action continues like this, the asset may jump back into the top cream.

Exchange Netflows Reveal Future of Cardano Price

Investors’ confidence in Cardano is gaining traction, as reflected in the ADA exchange netflows. But before that, Cardano’s Hydra is outperforming the Bitcoin Lightning network, according to the latest data from the Hydra DOOM game at the RareEvo blockchain event.

FUN FACT: In about 3 days of playing Doom, Hydra processed the same amount of transactions as the Lightning Network did in about 460 days.
The average TPS on Hydra was 350.
The average TPS of routed transactions on the Lightning Network is 2.5.#Cardano #Bitcoin
— Cardano YOD₳ (@JaromirTesar) August 20, 2024

Cardano has gained much traction with the crypto community following the Hydra success, and traders are using the hype to book profits in their trades.

Cardano price increased by 3.2% over the last 24 hours to trade at $0.3566, nearing a critical point in its price action history.

In the meantime, Cardano exchange netflows reveal current investor sentiment to be bullish, as Coinglass data shows a negative netflow of $5.73 million worth of ADA on August 20.

This is the largest withdrawal event since the August 5 market crash and signals that investors are choosing to hold on to their coins in anticipation of higher prices.

Additionally, the ADA open interest (OI) increased by 5% over the last 24 hours. Coupled with the rising price, it signals that Futures traders are opening longs, which is bullish.

Overall, positive network developments, combined with optimistic investors, is a recipe for an explosive rally. Cardano price is expected to make higher highs soon.

ADA Price Analysis: $0.36 Marks The Last Stand

ADA price actions broke out from a descending wedge on August 20, a bullish reversal signal. This suggests that a new uptrend could be starting.

ADA is likely to find major resistance at $0.3612, which coincides with the 200-day EMA, and beyond that $0.4054. The previous resistance before the breakout, near $0.3480, now acts as support. If the price pulls back, this level could provide buying opportunities.

The price is still below the 200 EMA (black line), indicating that while a breakout has occurred, the overall longer-term trend remains bearish until this level is reclaimed.

The MACD histogram shows increasing positive momentum, and the MACD line (blue) crossed above the signal line (orange), further confirming the bullish reversal. This suggests a continuation of the upward move.

If Cardano price manages to break and hold above the 200 EMA at around $0.3712, it could signal a more sustained move upward. In this case, longer-term positions could target higher resistance levels, such as $0.4500.

If the price of ADA fails to hold above the $0.3480 level, it may signal market weakness and result in more downside, invalidating the bullish thesis. Consider closing long positions and reassessing for potential further downside to $0.3300 and $0.3222.

Frequently Asked Questions (FAQs)

Hydra, Cardano’s scaling solution, processed more transactions in three days than Bitcoin’s Lightning Network did in a year, boosting confidence and driving a recent price surge.

The uptrend could be sustainable if ADA manages to break and hold above the 200-day EMA at around $0.3712.

If ADA fails to hold above the $0.3480 support level, traders should consider closing long positions as it may signal market weakness.

Evans Karanja

Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Source: https://coingape.com/markets/cardano-price-surges-8-in-3-days-is-ada-staging-a-comeback/