Cardano (ADA) continues to hover around the $0.30 and $0.35 mark as the token struggled to breach crucial resistance levels for the last few days. This decline could be attributed to the selling pressure the cryptocurrency experienced lately.

However, on-chain data reveals that market participants are now allocating their capital to buying ADA around its current price. Will this bullish pressure drive a notable upswing?

Cardano’s price is currently $0.32, reflecting a 7% drop over the past week. However, data from IntoTheBlock suggests that some investors see this as a buying opportunity ahead of a potential market recovery.

According to the Exchange On-chain Market Depth, a metric that tracks order books on the top 20 exchanges, participants have placed buy orders for 220 million tokens. At the current price, this represents over $70 million.

In contrast, bears are attempting to sell fewer than 170 million tokens, worth around $52 million. Since buying volume outweighs the selling pressure, Cardano’s price could be positioned for an uptrend.

Read more: How To Buy Cardano (ADA) and Everything You Need To Know

Beyond that, an overview of the network activity shows a significant uptick in the new, zero-balance, and active addresses metrics. This all-round increase signifies a rise in user engagement on Cardano’s blockchain.

It also implies that the rate of adoption of ADA by new participants has recently hit an impressive level. This increase in traction could be linked to Cardano’s Chang hard fork, which took place earlier this month.

If this remains the same, then the potential ADA rally could be driven by positive crowd sentiment.

A closer look at the chart shows that Cardano still faces challenges in flipping $0.32 into support. Notably, there is clear resistance at $0.34, which could impede a potential upswing.

However, BeInCrypto has identified a falling wedge pattern on the daily chart, a bullish technical indicator. This suggests that ADA may have completed its final downward move when it dipped to $0.30.

If the buying pressure continues, ADA could gradually rise, potentially reaching $0.38. However, if the token is rejected at $0.34, this upward trajectory may not materialize, and the price could fall back to $0.30.

Read more: 6 Best Cardano (ADA) Wallets You Should Consider in September 2024

If the buying pressure continues, ADA could gradually rise, potentially reaching $0.38. However, if the token is rejected at $0.34, this upward trajectory may not materialize, and the price could fall back to $0.30.

The post Cardano (ADA) Bulls Aim for $70 Million Move Ahead of Potential Rally appeared first on BeInCrypto.

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