Cardano’s volume rises above $1 billion as the price also mildly recovers.
The Balance of Power shifts in the favor of buyers, signifying a sustained upswing.
ADA climbs above a key Fibonacci level, indicating a return to 2024’s yearly high.
After dropping below $1 billion on Jan. 13, Cardano’s (ADA) volume has increased by 60% in the last 24 hours and surpassed the $1 billion mark again.
This rise in volume indicates that market participants are again showing interest in the altcoin. Interestingly, it also coincided with the price increase from $0.89 to $0.96, indicating that buyers are snapping up more tokens.
But that is not all, as this analysis tells a deeper story about the cryptocurrency’s price performance.
ADA has shown readiness to rally toward $2 on several occasions, but it has faltered at almost every attempt this cycle. Further, the decline below $1 on Jan. 12 hinted that the altcoin could face a steeper correction.
However, that did not happen as the volume, which is a vital indicator of directional strength, surged alongside the price. Typically, when the volume increases with an upswing, the price will likely continue jumping.
On the flip side, when prices fall on increasing volume, it indicates that the downtrend is gaining momentum, indicating a weak trend.
Thus, if Cardano’s volume continues to rise, the token’s value might continue moving toward $1.24, its yearly high of 2024.
Following the rise in volume, the ADA/USD daily chart shows a spike in the Balance of Power (BOP).
The BOP is an indicator that analyzes the strength of buyers (bulls) and sellers (bears) in the market by measuring their ability to push prices to lower or higher levels.
A positive BOP value indicates that bulls have the upper hand and can drive prices higher. A negative value, on the other hand, signifies the dominance of sellers, who can push prices lower.
Since the BOP on the Cardano chart spiked to 0.85, it indicates that ADA’s price is likely to trade much higher than $0.98 in the coming days. However, it is important to note that this could only be the case, if bulls keep up the dominance.
ADA Price Prediction: Token to Resist Downward Pressure
Cardano’s initial decline came after the price hit $1.03 on Jan. 12. After this hike, the price dropped to $0.89 the day after amid bearish momentum.
However, the 4-hour ADA/USD chart below reveals that the cryptocurrency seems to tow the same path that drove it to $1.03 earlier.
The current pattern, which appears to be a V-shaped recovery, is also similar to the rally that saw ADA’s price hit $1.15 on Jan. 7.
If bulls continue to outpace bearish dominance, then ADA could climb to the 0.786 Fibonacci level positioned at $1.09. If buying pressure intensifies, the target could be higher, and ADA could inch closer to $2.
However, if sellers strengthen their position and tug the price below the $0.236 Fib level, this prediction might be invalidated.
In that scenario, ADA’s price could slide again — below $0.88.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
