Cardano (ADA) Bulls Eye 70% Rally Amid Bullish Breakout, But Social Sentiment Remains Weak
The post Cardano (ADA) Bulls Eye 70% Rally Amid Bullish Breakout, But Social Sentiment Remains Weak appeared on BitcoinEthereumNews.com.
Cardano’s bullish momentum sparks optimism amongst investors. Despite showing positive technical signs, Cardano’s social sentiment remains tepid. Significant indicators like the RSI and CMF demonstrate strong upward momentum. Cardano’s bullish breakout past $0.4 stirs mixed reactions amid weak social sentiment and promising technical signals. Cardano Breaks Past Key Resistance Level Cardano (ADA) recently experienced a bullish breakout from its falling wedge pattern, pushing past the $0.4 resistance level. This move has set the stage for a potential 70% rally. Crucial indicators like the Relative Strength Index (RSI) and Chaikin Money Flow (CMF) reflect robust upward momentum and significant capital inflows. The Directional Movement Index (DMI) noted a possible trend reversal on July 13, indicated by the crossover of the directional indices (DIs). Technical Indicators Signal Positive Momentum As per the daily price action, Cardano is exhibiting a bullish structure. The RSI values are in the upward zone, affirming strong buying interest. Simultaneously, the CMF suggests substantial capital is entering the market, bolstering ADA’s bullish stance. Conversion of the $0.4 resistance into a support level further underscores the possibility of continued upward movement, provided the bulls maintain their position. Analyzing Market Sentiment and Activity Beyond just price movements, on-chain metrics offer a deeper view of Cardano’s health. The count of daily active addresses has held steady between 32,000 and 34,000 since April, demonstrating consistent network activity despite previous price declines. This stability suggests underlying confidence and belief in Cardano’s blockchain technology. Shifts in Circulation and Network Velocity Recent data points to a significant decrease in ADA’s circulation and velocity over the past two months, indicating reduced transaction volume and lower token exchange frequency. This reduced activity could be symptomatic of accumulation behavior, hinting at potential bullish trends in forthcoming weeks. Challenges in Social Sentiment While technical indicators present a bullish outlook,…
Filed under: News - @ July 22, 2024 2:18 am