Cardano (ADA) is trading below yesterday’s closing price because it shows price volatility. This drop in price comes despite trading volume increasing by more than 26% in the past 24 hours.
ADA has now lost its previous gains in the past week, falling from $0.4028 on April 29, 2023 to $0.3974 on April 30. It is currently trading in the $0.3926 range. The past price behavior suggests that it is likely to recover from the bearish trend.
Fortunately, Cardano retains most of its profit in 2023, from $0.248 on January 1, 2023 to its current price of $0.3922 at press time.
ADA Price Analysis
ADA is experiencing price volatility today and forming a red candle on the daily chart. The Relative Strength Index stands at 47.41, reflecting price neutrality as the bulls and bears battle for control.
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Also ADAs Moving average convergence/divergence (MACD) is below the signal line and displays a negative value. The MACD indicator signals a possible price drop for the asset as the bears are still active in the market.
However, ADA is still above 50 days and 200 days Simple Moving Averages (SMA), a bullish sentiment for the short and long term. The 50-day SMA is correlated with a support level that has supported ADA over the past three days.
Cardano’s development steps could facilitate a rally
Cardano’s reputation as a developer hub is growing, with an active community supporting the project. Cardan in the Community Digest announced the upcoming Cardano Summit in 2023.
The event will take place in Dubai between November 2-4, 2023. It will provide community networking opportunities and access to top crypto executives who will be speaking at the event.
Although Cardano is in a bearish phase, its development moves are likely to boost price action in the coming days.
Ada finance announced the release of Aada V.2, a pool manager for NFTs. Holders of NFTs can delegate locked ADA to any pool and register a new stake pool. Users can transfer, sell or stake NFTs on DeFi platforms.
Cardano Active wallets and whale activities are booming
Cardano’s transaction volume has also increased, partly due to an increase in the total number of active wallets. The total number of wallets on the network is currently up 4 million. Also, Input Output Global (IOG), the developer behind the network, revealed that Cardano’s processed 65.4 million transactions in the past week.
The increase in transaction volumes correlates with an increase in whale activity on the network. The whales are currently in one accumulation phase an indication of growing confidence in ADA’s long-term potential.
Featured image from Pixabay and chart from Tradingview.com
