Cardano DeFi Trading Volume Surpasses $22 Million: Will ADA Price Respond

Cardano’s price rebound stalled at $0.44 on July 18, after 40% gains in 14 days; On-chain data analysis examines the bullish and bearish catalysts that have influenced ADA price stagnation in the past 72 hours.

Cardano’s DEX volumes rise amid mixed market signals

Since July 5, Cardano has been on an upward trajectory, reflecting the broader crypto market trends. But after nearly 2 weeks of sustained uptrends, mixed signals have emerged within the Cardano ecosystem as bulls and bears struggle to dominate the next market phase.

In the last two weeks between July 5 and July 18, ADA prices rose significantly. The chart above shows how ADA prices rose 44% from the monthly low recorded on July 5th.

However, a closer look at the chart shows that the Cardano price rally has struggled to advance above the $0.45 resistance despite the bullish sentiment surrounding the cryptocurrency sector this week. This rare market alignment suggests that conflicting bullish and bearish catalysts are currently in play in the Cardano markets.

On the plus side, Cardano’s decentralized exchange (DEX) trading volumes have risen significantly, highlighting the growing interest in its DeFi ecosystem. According to recent data, Cardano’s 24-hour trading volume exceeded $350 million, with DEX volumes exceeding 50 million ADA this week.

This surge indicates increasing adoption of DeFi applications on the Cardano blockchain, which generally correlates with higher network activity and potentially positive impact on the network’s health. Despite this increase in DEX activity, Cardano’s price has continued to show bearish trends. ADA has experienced a notable correction and is trading at around $0.4493, down 3% over the past week.

Further analysis shows a decline in network activity, with daily active addresses falling from 39,300 to 31,000 and daily transactions falling from 94,000 to 49,500. These metrics indicate some bearish pressure on ADA, which is reflected in the recent price action.

Despite short-term bearish signals, the long-term outlook remains optimistic. Cardano’s co-founder Charles Hoskinson and other proponents believe in its potential to revolutionize financial markets. Speculation about a potential Cardano spot ETF approval could also act as a significant bullish catalyst.

Cardano Price Forecast: Bulls Struggling with $0.45 Resistance

Cardano (ADA) has shown impressive performance in recent days, with the price climbing from $0.30 to $0.44, representing an increase of 44.07% over the last 13 days. This bullish momentum has brought ADA closer to the critical resistance level at $0.45, which it must surpass to maintain its upward trajectory.

The chart illustrates a strong bullish trend, supported by a series of higher highs and higher lows. The Parabolic SAR dots below the price indicate a continued bullish sentiment, while the ALMA (Adaptive Moving Average) line currently stands at $0.44, acting as a dynamic support level. This suggests that any short-term pullbacks may find support around this level, potentially providing a buying opportunity for traders.

Despite the recent gains, ADA faces significant resistance at $0.45. Decisively breaking this resistance could pave the way for further upside, targeting the next major resistance level around $0.50. On the downside, the primary support level is at $0.36, as indicated by the Parabolic SAR, which is also in line with a previous consolidation zone. A drop below this level could signal a shift in sentiment, potentially leading to a deeper correction.

The RSI (Relative Strength Index) is at 55.93, which is still below the overbought territory, indicating that there is room for further upward movement. This is consistent with the overall bullish outlook, although traders should watch for any signs of RSI divergence that could indicate weakening momentum.

In summary, Cardano’s technical indicators are trending bullish, with the potential for further gains if the $0.45 resistance is breached.