Cardano price rebounded above the $0.45 territory on June 4, after weeks for bear dominance, recent market trends suggest that ADA bottom is in and bulls could gain foothold in the days ahead.
Cardano price Reverses Downward Trajectory in June
In May 2024, Cardano emerged one of the worst-performing assets in the top 20 market rankings, closing the month with a -12% decline between May 21 and May 31. The ADA price struggles was attributed to negative impact of the Ethereum ETF approvals on rival layer-1 networks.
However, with the ETF’s official launch still hanging in the balance, investor euphoria has cooled off significantly since the turn of the month.
The falling ADA prices appear to have attracted savvy investors looking to enter the fray at a discount. Since, Cardano price dipped below the $0.44 of May 31, there has been a significant uptick in demand for ADA.
As seen in the chart above, ADA’s price has now surged 4.4% within the first four days of June, adding over $500 million to its market cap in the process.
Cardano Trading Volume Hits $300M after Weeks in Decline
After four consecutive green candles, bulls have evidently now gained a foothold in the Cardano markets. However, a closer look at ADA trading volumes during this uptrend period leaves clues of a much larger price breakout ahead.
Santiment chart below presents the dollar value of all trades involving ADA on a given day.
As Cardano struggled to find the demand in the last week of May 2024, the trading activity dwindled, driving the 24-hour volume to a 30-day low of $166 million on June 1. However, the downward trajectory has flipped since then, as the bulls began June 2024 on a strong foot.
At the time of writing on June 4, Cardano trading volume has surged above $300.63 millionas depicted by the blue trendline in the chart above. This reflects an increase of $132 million in new demand over the last 4 days.
When trading volume increases significantly after a major price trend reversal, it suggests strong market interest and participation.
This often indicates that the new trend may have substantial support and could continue as the increased volume confirms the momentum behind the price movement. Traders and investors view the rise in volume as a sign of conviction in the new trend, potentially leading to further price increases.
Cardano Price Forecast: Imminent Breakout above $0.50?
Cardano’s price has surged 4% in the last four days, with trading volume increasing by over $130 million. With the growing bullish moment across the ADA markets in June 2024, a short-term ADA price breakout above $0.50 could be on the cards.
However, IntoTheBlock’s GIOM data identifies the $0.48 territory as the major resistance level to beat in the near term.
As seen above, 231,450 addresses had acquired 2.91 billion ADA at an average price of $0.48. Considering they had been holding at a loss for weeks, many of those holders could opt to book early profits.
In this scenario, if ADA price can manage to scale that major sell-wall at $0.48, they gain momentum and extend the rally above the $0.50 milestone.
But conversely, if the bulls succumb to another correction phase, the $0.44 cluster could offer significant short-term support.
