Coin Edition -
- ADA could not breach the $0.38 resistance despite its 3.71% jump in the last 24 hours.
- If the Awesome Oscillator indicator turns positive, ADA’s rise to $0.40 may be confirmed.
- Analyst says ADA may hit $3 if it maintains its 1% dominance in a potential future $10 trillion crypto economy.
Despite the recent recovery of the crypto market, Cardano (ADA) has not been able to breach the $0.40 region. According to the ADA/USD 4-hour chart, the inability of the cryptocurrency to build on its 3.71% 24-hour increase was because of selling pressure.
Initially, ADA’s momentum had turned bullish after buyers made a way for a higher high from $0.374. As bulls tried to push ADA toward $0.40, sellers rejected the attempt by resisting the price movement at $0.387.
The $0.38 Zone Is Now Crucial
At the time of writing, bulls are back and are making another attempt at flipping the resistance. As a result, the $0.38 region has become a critical area for ADA. If buyers fail to breach the zone, then ADA may fall back to $0.37.
However, should a lot of buying pressure appear, sellers may have no other option than to succumb to the uptrend. Also, if ADA is to rise as high as $0.40, the trading volume needed will be much more than the 2.27% increase seen in the last 24 hours.
Should a substantial increase in volume follow the price uptick, then ADA might have enough strength to neutralize sellers’ presence. At press time, the on balance volume (OBV) was 4.70 billion. This OBV reading is a sign of strength, suggesting that market participants are willing to buy and not hesitant. As long as the OBV does not turn negative, ADA’s chances of hitting $0.40 remain feasible.
Another indicator to also look out for is the Awesome Oscillator (AO). At press time, the AO was -0.002. With rising green bars, the AO indicated that ADA was not yet out of its bearish phase but was in the process. If the AO reading turns positive, it could be a sign that confirms ADA’s uptrend.
ADA/USD 4-Hour Chart (Source: TradingView)
Can ADA Take 5% Market Share?
In the meantime, some analysts are projecting ADA’s price to increase exponentially in the long term. Top of the list was Lucid, a crypto analyst on X (formerly Twitter).
According to Lucid, Cardano has the capacity to take 5% of the market share if and when the total market cap hits $10 trillion. He also mentioned that the token could hit $3 if its market dominance stays at 1%.
Cardano's dominance is currently 1% of the $1.4 Trillion Industry wide Market Cap! A $10 Trillion Dollar Blockchain Industry is only a matter of time!