Cardano Price Prediction: ADA Trading Volume Hits $300 Million, What Happens Next?

Cardano price re-established itself in the $0.45 area on June 4 and after weeks of bearish trading, the recent market trend suggests that ADA has bottomed and bulls are likely to gain the upper hand in the coming days.

Cardano price sees downward trend in mid-June
In May 2024, Cardano became one of the worst performing assets in the top 20 market, losing 12% between May 21-31. The decline in ADA’s price has been attributed to the negative impact of Ethereum ETF approval on competing layer-one networks.
However, with the official launch of the ETF still uncertain, investor enthusiasm has cooled significantly since the beginning of the month.

Cardano Price Chart ADAUSD | TradingView
The falling ADA price seems to have attracted savvy investors to enter the market at a discounted price. Since the ADA price dropped below $0.44 on May 31, the demand for ADA has increased significantly.
As shown in the chart above, ADA’s price rose by 4.4% in the first four days of June, adding more than $500 million to its market cap in the process.

Cardano transaction volume hits $300 million after weeks of decline
After four consecutive sessions of gains, bulls have clearly taken hold in the Cardano market. However, a closer look at ADA’s trading volume during this rally leaves a clue to a larger price breakout.
The Santiment chart below shows the USD value of all transactions involving ADA.

Cardano Price vs ADA Trading Volume | Santiment
When Cardano failed to find demand in the last week of May 2024, trading activity decreased, causing the 24-hour trading volume on June 1 to drop to its lowest level in 30 days, at just $166 million. However, the downtrend has reversed since then as the bulls initiated a strong advance in June 2024.

As of writing on June 4, Cardano’s transaction volume has surged to $300.63 million, as shown by the blue trendline in the chart above. This reflects growth in new demand of $132 million over the past four days.

When volume increases significantly after a major price trend reversal, it indicates high interest and participation in the market.
This often indicates that the new trend may have substantial support and is likely to continue as the momentum of the price movement is confirmed by the increased volume. Traders and investors view increased volume as a sign of confidence in a new trend that could lead to further price increases.

Cardano Price Prediction: $0.50 Breakout Coming Soon?
Cardano’s price has risen by 4% in the past four days, with trading volume increasing by more than $130 million. As the bullish momentum grows in the ADA market by June 2024, there are chances that the ADA price will break above $0.50 in the short term.
However, IntoTheBlock’s GIOM data identifies the $0.48 area as a major resistance level that needs to be broken in the near term.

Cardano ADA Price Prediction | IntoTheBlock
As shown in the above chart, 231,450 addresses purchased 2.91 billion ADA at an average price of $0.48. Many of these holders may choose to take profits early, considering they have been holding losses for the past few weeks.
In this case, if ADA prices can break above the major sell order wall at $0.48, they will gain momentum and push the price towards the $0.50 milestone.
But on the contrary, if the bulls succumb to another corrective phase, the $0.44 area is likely to offer important short-term support.

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