Cardano [ADA] has experienced a renewed surge in interest following the integration of the ASI token into its blockchain infrastructure. This milestone, coupled with increased activity in decentralized finance (DeFi) platforms, has once again brought attention to the network. Despite these positive developments, the price of ADA witnessed a marginal decline of 0.49% in the past 24 hours, currently standing at $0.3429.
While there are indications of potential growth, market signals advise caution when considering long-term bullish projections.
Latest Market Trends
Cardano has been in a consolidation phase within a narrow range of $0.302 to $0.395, with traders closely monitoring the resistance level at $0.395. Analysis of Bollinger Bands indicates a tight trading range, often predicting forthcoming volatility. A successful breakthrough above the $0.395 resistance could confirm the onset of a stronger bullish trend that many traders have been anticipating.
Although Cardano’s technical indicators reveal a mixed outlook, the Relative Strength Index (RSI) stands at 48.37, signaling a neutral market phase that could pave the way for potential price growth.
In the past 24 hours, ADA’s trading volume saw a 3.16% decrease, totaling $232 million. This drop in volume might present a challenge for ADA to surpass the $0.395 resistance. A substantial increase in trading volume would be necessary to confirm a bullish breakout.
Active Addresses Reach a 5-Month Peak
Contrarily, on-chain activity does showcase positive developments for Cardano. The number of active addresses soared to 31,678, marking a 5-month high and pointing towards heightened network participation post the ASI token integration.
Furthermore, Cardano’s transaction volume surged to $286.81 million, indicating increased on-chain activities, as reported by Coinglass. This uptick in transaction volume highlights the robust utilization of the Cardano network, which could potentially influence future price movements.
The integration of Cardano’s ASI token has reignited interest and driven a surge in active addresses. Nevertheless, the dip in trading volume raises questions regarding the sustainability of this excitement translating into consistent growth.
A rise in trading and transaction volume will play a crucial role in enabling ADA to break free from its ongoing consolidation phase. Traders are advised to exercise vigilance, closely monitoring critical levels and network activities before confirming a long-lasting bullish trend.