Cardano's price movement today is largely influenced by a spike in network activity, which has brought attention to the potential for a bullish reversal. The ADA price has been testing a crucial support level at $0.73, which has historically acted as a pivot point for price action. This level's significance is underscored by the recent decline in selling volume, suggesting that the market may be preparing for a breakout rally. The 90-day adjusted Network Value-to-Transaction (NVT) ratio has also dropped significantly, indicating increased transaction activity and hinting at growing adoption within the Cardano network. This decline in the NVT ratio often serves as a leading indicator of an upcoming price jump, as it reflects that the asset is becoming undervalued relative to its transaction volume.
Despite the potential for a bullish reversal, Cardano faces challenges as whales have yet to buy back the 330 million tokens they offloaded during the recent market crash. This lack of whale accumulation adds to the bearish outlook, raising concerns about sustained buying pressure in the near term. However, the technical indicators, such as the Fibonacci levels, point to a critical price level near $0.8567, which aligns with the local resistance trendline. This trendline forms a falling wedge pattern with the support trendline, typically signaling a bullish breakout. If buyers step in, a strong reversal could quickly shift the momentum, potentially leading to a recovery.
Cardano's price has increased by 2.59% today, reaching a high of $0.765176.