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Cardano (ADA) Volume Rebounds Over $1B as Bulls Target Stronger Uptrend

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Victor Olanrewaju
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Key Takeaways

  • 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.

Cardano Sees Surge in Demand

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.

Cardano volume surges amid price rebound
ADA Volume | Credit: Santiment 

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.

Cardano bulls show strength
ADA Balance of Power | Credit: TradingView 

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.

Cardano price heads toward recovery
ADA/USD 4-Hour Chart | Credit: TradingView 

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.
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Victor Olanrewaju

Victor is a reporter at CCN. Currently residing in Lagos, Nigeria, Victor focuses on writing news and providing readers with on-chain and technical analysis. Before he joined CCN, he worked as an analyst at BeInCrypto and AMBCrypto. He published several pieces at these outlets detailing investor behavior and analyzing price action across different cryptocurrencies. Victor holds a Bachelor's degree in Physics from the University of Ibadan. With his background, he finds it seamless to break down technical terms into simpler words while keeping readers engaged.
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