As the year 2023 began, things looked promising for the entire cryptocurrency industry. Most of the major crypto assets were experiencing strong gains and the investors were very excited about that.
However, Cardano (ADA) was not able to enjoy the same rallies as other major cryptocurrencies. The trading price ADA was moving in the downward direction even when other cryptocurrencies were rising.
ADA Price Rebounded
As the year began, the investors saw that the value of ADA was plummeting. The ADA investors were not happy to witness the downtrend in the trading price of ADA.
However, after a few days, the trading price of ADA picked up the pace. The asset price has started to move upward and even the latest session has turned out to be positive.
As a result, the investors have become quite optimistic about the asset and they are ready to push its price higher.
At the beginning of 2023, the price of ADA was over the $0.30 level. However, the bears were able to bring it below the $0.30 level.
To the bulls’ surprise, the bears were not done with the downtrend as they continued with their selling spree. This kept pulling ADA’s price lower and it went all the way down to $0.24.
Finally, the bulls were able to push back a bit and the price of the asset retraced a bit. The data shows that the price of the asset moved to a high of $0.2645.
Trading Volume has surged as well
The promising aspect of the recent rally is that it is backed by a strong trading volume. If the trading volume did not surge with the trading price, it could mean that the rally was just a trap.
It could be in place to lure the bulls and then trigger another selling spree to pull ADA lower. This would break their spirits and result in pulling ADA’s price even lower.
As the trading volume has backed the rally, it suggests that the bulls are in high spirits. They are coming in with strong buying sentiments and may continue trading the asset to increase their profits.
This is the reason why in the past 24-hours, the trading volume for ADA has surged more than $200 million.
Even the market capitalization of ADA has recorded a major push. The data shows that the value of ADA has surged to $9.3 billion.
Bulls Aiming to Move ADA Over $0.30
The technical analysis suggests that the investor is in high spirits and they may continue buying more ADA. If they continue buying more ADA, then it would mean they are aiming for a higher goal.
From the looks of it, the bulls may be attempting to retake the $0.30 level. It is now acting as a strong resistance level. They have to get through a particular level no matter what.
If they manage to do it, then the value of ADA will have grown so much that it will overtake the valuation of Dogecoin (DOGE).
DOGE is currently the 8th most valued cryptocurrency and ADA will eventually overtake the 8th number spot.
A Retest May Take Place at $0.27
Things seem to be quite promising for the bulls at the moment but they may find it very challenging to cross the $0.27 level. To cross the level, they will need to increase their buying power.
However, there is a high chance that the $0.27 price may get retested even when the bulls manage to cross it. If the bulls manage to retain the same level once again, then ADA’s price will surge significantly.
Given how the next few days turn out to be for the crypto industry, the price of ADA may either move in the bullish zone or the bearish.
For now, there are strong chances that ADA may move in the upward direction, pushed by strong sentiments.