The recent market sentiment for Cardano (ADA) has clearly turned bullish, as sentiment and technical indicators gradually improve, ADA seems to be at a significant turning point.
Bullish Sentiment and Technical Structure Both Rising 📈
Yesterday, ADA successfully reclaimed its 9-day and 21-day moving averages (MA), reaching $0.6434 and $0.6301 respectively, laying a solid foundation for a potential price recovery. These technical supports indicate that ADA is preparing for a stronger upward trend.
The parabolic turning indicator also shows that ADA remains in bullish momentum. Although the price has fallen below $0.6153, it still maintains a favorable technical zone. However, to rise further, ADA must break the resistance level at $0.7626, which has been a bottleneck limiting its rise over the past few months.
Key Breakthrough: Psychological Level of $1.20 💥
If ADA can successfully break through $0.7626, especially with increased trading volume, the price is expected to swiftly surge towards $1.20. This level is not only a psychological barrier but may also attract more traders' interest, driving the price further up.
On-chain Signals Support Accumulation 🛠️
On-chain trading activity is also boosting ADA's bullish outlook. Data shows a massive outflow from spot exchanges, with ADA valued at $16.44 million exiting the trading platforms, while inflows totaled $13.41 million. This net withdrawal typically indicates that holders are transferring their tokens to long-term storage or DeFi protocols, reflecting their optimistic outlook on ADA.
Meanwhile, the total locked value (TVL) in DeFi based on Cardano remains stable, with a slight decline, indicating that the market is not experiencing panic selling but is in a healthy adjustment period.
Retail Enthusiasm High, Whale Activity Slows 🐋📉
Network activity presents a complex picture: trading volumes below $1 surged by 250%, indicating increasing participation from retail investors. Meanwhile, whale trading volumes have dropped by over 80%. This phenomenon may suggest that retail investors and dApp users are gradually becoming the main force in the market, while whales may be watching from the sidelines.
Investor Composition Changing: Retail Confidence Strengthening 💪
In the past 30 days, whale holdings decreased by 1.68%, while long-term investors' holdings increased by 1.60%, and retail holdings rose by 0.72%. This indicates that the ownership structure of ADA is changing, with more small investors joining in, pushing the market towards a stronger foundation.
ADA May Rebound to $0.70 and Challenge Higher Levels 📊
With the combined push of bullish sentiment, solid technical support, capital outflow, and increased retail participation, ADA looks likely to soon return to $0.70 and has the potential to break through $0.7626. If these conditions persist, ADA's next step could be a broader upward trend, potentially even breaking the $1.20 barrier!
In summary, ADA's market momentum is strengthening, and investor sentiment is recovering. If it breaks through $0.7626, ADA may welcome a new wave of price increases.
