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Highlights
- Cardano price holds the ascending channel support at $0.3, increasing the chances of a swift recovery.
- Surging network activity suggests that the Cardano protocol is far from dead.
- The 30-day MVRV ratio drops to -0.274 signals a good time to DCA into ADA.
Cardano (ADA) price stabilized alongside other cryptocurrencies, rising by 1.1% on Wednesday. If this move develops into a full-blown uptrend, allowing a key bullish fractal to play out, ADA will advance north, targeting highs above $1. Bitcoin price remains sluggish following the crash below $60,000 while Ethereum exhibits a calm outlook.
Cardano Price Poised to Hit $1 In September
Cardano price holds above the critical support at $0.35. The smart contracts token is fundamentally strong based on the blockchain data. For instance, Santiment data reveals a major upturn in active users on the network from around 20,000 on August 22 to approximately 35,000 on August 27. This spike within a very short period reinforces Cardano as a competitive cryptocurrency project. ADA price tends to rally with increasing network activity, implying that a breakout to $1 is likely before the end of September.
Based on the market value realized value (MVRV) metric, which measures the relationship between the current Cardano price and the average price at which existing coins were acquired, holders are experiencing unrealized losses. Put more simply, investors are unlikely to sell ADA; instead, they choose to hold and even append to their existing holdings. The MVRV ratio drop below 1 calls on investors to buy intending to sell at a higher price.
Meanwhile, whales do not seem to be bothered by the downtrend in Cardano price. According to the supply distribution chart, addresses holding between 100 million and 1 billion coins added 130.5 million ADA from August 22. They currently hold 7.23% of the total supply. Such a spike in the risk appetite, even as ADA price cascades, hints at a bullish future.
ADA Price Technical Analysis As Key Support Holds
Cardano price uptrend depends on the robustness of $0.35 support, which coincides with the ascending channel’s lower boundary. The area also begins a bullish fractal likely to ignite a short-term rally to $0.42.
With the Relative Strength Index (RSI) heading into the oversold region, it might be prudent for traders to prepare to buy ADA. Some following signals will include a rebound from $0.35, supported by the RSI reversal from the oversold region. On the upside, traders will look for a breach of the channel’s resistance, breaking the bearish pattern and allowing the Cardano price to extend its run toward $1.
Traders must be ready to take the appropriate action should the current downside risks extend below the channel support. In that case, some may short the ADA price as it drops, while others could wait for support at $0.32 or $0.3 to buy ahead of the next recovery attempt.
Frequently Asked Questions (FAQs)
1. Why is ADA price down today?
2. Will Cardano recover to hit $1?
3. Which other support levels should I watch out for?
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