"In May 2024, the price may reach $0.60"

Cardano (ADA) price broke above $0.47 on May 4 and it looks like ADA is ready to rise again as demand increases on exchanges.
With bulls piling up buy orders at 250,000,000 ADA, ADA price has been lacking momentum through April 2024 as the crypto market enters a correction phase. At the close of trading on April 30, Cardano’s price fell to a two-week low of $0.43.
This significantly lower price seemed to attract investors’ attention to ADA when the crypto market recovery phase began in May.
The chart above shows how the Cardano price quickly rose by 15% from $0.43 on April 30th to reach a high of $0.47 on the daily time frame at the time of writing on May 4th.
Cardano’s price woes in April can be largely attributed to the decline of the Cardano DeFi ecosystem. Throughout the month, investors withdrew more than 36 million ADA from Cardano’s native DeFi protocols, which led to a 35% price drop.
With the DeFi scene yet to recover, on-chain data trends show that swing traders who entered the overall crypto market rally this week may have been the main catalyst for ADA’s 15% price rebound.
This stance is further corroborated by IntoTheBlock’s Exchange On-chain Market Depth graph, which shows the current volume of active buy/sell orders for assets listed on recognized exchanges and trading platforms.
Amid the decline in DeFi TVL, aggregate exchange order book data shows that long swing traders have taken control of the Cardano spot market in recent days. As shown above, current market depth data suggests that bulls have placed active orders to buy 251 million ADA at an average price of $0.47.
Meanwhile, bears only listed 230 million ADA for sale. In fact, there is excess demand in the market for more than 20 million ADA.
Following the basic laws of demand and supply, when the number of buy orders far exceeds the number of active sell orders, this increases the likelihood of further price increases as buyers may have to compete for fewer orders by raising their bids. This explains why the Cardano price has increased by 15% in the past 3 days.
If this rare market dynamic remains in favor of the bulls, investors can expect further upside in the coming days.
Considering the current excess demand of over 20 million ADA, the Cardano price looks poised to revisit the $0.60 milestone in the coming days. However, this high target will not be easy for bulls as GIOM data from IntoTheBlock highlights a wall of sell orders at $0.50.
As shown in the above chart, 181,620 addresses purchased 2.26 billion ADA at an average price of $0.49. If they choose to take profits early, Cardano price may struggle to return to the $0.50 area.
However, if the bulls can break above this sell order wall, ADA could head towards $0.60 before facing a larger resistance area.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. The opinions expressed in this article may reflect the author’s personal opinions and do not necessarily reflect the opinions of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.