Cardano (ADA), currently ranked as the 9th largest cryptocurrency by market capitalization, has been experiencing a downward trend amidst the prevailing bearish sentiment in the crypto market. Bitcoin (BTC), the dominant player in the market, has been leading the way in price corrections for top cryptocurrencies. Despite ADA’s recent retracement of nearly 20% in the past week after reaching a 22-month high of $0.810 on March 14, there are indications pointing towards a potential trend reversal on the horizon.
Crypto analyst “Trend Rider,” known for sharing insights on the social media platform X (formerly Twitter), has highlighted ADA’s market shift from bearish to bullish trends. Looking at the two-week chart, key moving averages are realigning, signaling a transition to a bullish framework as indicators move from red to green. The pattern observed by the analyst is similar to a previous occurrence before ADA embarked on a significant bull run.
If history repeats itself and mirrors the April 2021 bull run, where ADA saw a drastic increase from $0.133 to its current all-time high (ATH) of $3.168 in less than a year, posting gains of over 2000%, a similar uptrend could potentially push ADA past the $1 mark. Another 2000% price surge could even propel Cardano’s native token to reach the $12.6 level, marking a significant quadrupling of its all-time high milestone.
While the market correction persists, Trend Rider has identified crucial support lines that must be maintained to sustain the bullish structure. According to the analyst, the trend support for ADA is expected to range between $0.45 and $0.52. Cardano has shown notable progress in key metrics, as indicated by data from Token Terminal.
Cardano’s fully diluted market capitalization is approximately $29.80 billion, representing robust growth over the past 30 days. The circulating market capitalization, which considers only the tokens currently available for trading, has also experienced a significant increase, reaching around $23.35 billion. Additionally, Cardano has witnessed a substantial surge in trading volume over the past month, soaring to approximately $27.96 billion, reflecting a demand for ADA tokens.
The fees generated within the Cardano network have also seen a significant growth of 36.5% over the past 30 days, totaling around $506.07k. When annualized, the fees generated by the Cardano blockchain reach an estimated $6.16 million, indicating an expanding usage of the network for various transactions and applications. ADA is currently trading at $0.603, down 2.6% in the last 24 hours.
Despite the recent market fluctuations, Cardano (ADA) shows signs of potential upward movement based on historical trends and key metrics. Investors are urged to conduct thorough research and due diligence before making any investment decisions, as the crypto market is inherently volatile.