Cardano’s native token ADA rose more than 6% over the past 24 hours as trading volume spiked overnight. The token reached a peak of $0.611 at 08:00 UTC, marking a 5.69% increase from the opening price of $0.578.
The price movement outperformed the broader crypto market and bitcoin, which remained relatively flat during the same period. High volume support emerged around the $0.590 level during the 05:00 UTC hour when buying pressure propelled ADA upward.
Trading volume reached above-average levels of 48 million during the initial rally phase. The subsequent pullback found resistance at $0.609 during the 12:00 hour with elevated volume of 81.6 million, suggesting profit-taking after the rally.
Market data shows the Cardano supply in profit reaching 18.23 billion ADA on Friday. This represents an increase from 15.89 billion ADA on Tuesday, adding 2.34 billion ADA tokens to the supply in profit so far in July.
The supply in profit represents tokens acquired or last moved at a price lower than the current market price. This increase aligns with the weekly recovery and could potentially increase buying pressure.
During a 60-minute period from July 3, 14:50 to 15:49 UTC, ADA experienced downward pressure. The token declined from $0.599 to $0.589, representing a 1.7% loss during this timeframe.
A sharp sell-off occurred at 15:35 when the price dropped to $0.589. This move was accompanied by volume of 7.5 million, establishing a clear support zone at this level.
The asset attempted recovery between 15:36 and 15:42 UTC, forming a minor consolidation pattern around $0.591. However, it failed to sustain momentum as selling pressure resumed.
Technical indicators show ADA trading near a resistance trendline formed by connecting the highs of May 23 and June 10. A parallel support trendline connects the May 19 and June 5 lows, creating a falling channel pattern.
Thursday’s high of $0.6119 before closing at $0.5992 indicates overhead supply outgrowing demand. ADA currently struggles for a decisive bullish close to signal a breakout above the channel.
The Moving Average Convergence/Divergence (MACD) indicator displays a surge in green bars from the zero line. This suggests the trend momentum is shifting bullish, though the MACD and signal line remain in negative territory.
The Relative Strength Index (RSI) stands at 47, reverting from the halfway line. This reflects a struggle to regain bullish momentum in the near term.
If ADA holds a bullish close, the uptrend could target the May 19 low at $0.7100. Market analysts point to potential bullish targets around $0.70-$0.72 if the breakout occurs.
On the downside, if ADA marks a daily close below Thursday’s opening price of $0.5840, it could decline towards the $0.5419 support. This level was marked by the June 22 daily close.
The final minutes of trading showed signs of potential reversal with price bouncing from the session low of $0.588 to close at $0.589. This suggests possible exhaustion of short-term bearish momentum.
Market analysts remain divided on ADA’s short-term prospects, with some noting bearish on-chain metrics including declining active wallets and exchange outflows. The token currently trades at $0.5835 as of press time on Friday.
The post Cardano (ADA) Price Soars to 5-Month High as Trading Volume Explodes appeared first on CoinCentral.
Also read: Chart Decoder Series: Stochastic Oscillator – The Trader’s Radar for Reversals
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