Cardano Price Prediction: Why $0.7800 Could Drive an Uptrend in ADA?

• Cardano price prediction remains strongly bearish, however, the odds of a bullish reversal remain solid around $0.7800. 
• The cryptocurrency is down 72.52 percent from its all-time high of September 2, 2021.
• ADA/USD coin is heading lower, and it’s likely to gain immediate support at the $0.7810 level. 

Cardano (ADA) has been one of the market’s hardest-hit cryptocurrencies. The digital asset, which reached a high of $3.10, is now trading below the $1 mark, reminiscing about its glory days. This has been going on for a while, and some investors believe the onslaught is coming to an end. However, on-chain metrics indicate that this is not the case and that the downtrend is not about to end anytime soon. Cardano price prediction remains strongly bearish, however, the odds of a bullish reversal remain solid around $0.7800.

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On-Chain Metrics Are Negative

The amount of activity recorded on the network is one thing that has always gone well for Cardano. In terms of activity and traffic, the cryptocurrency, which has a cult-like following, has been one of the best-performing networks. In terms of volume, it may eventually rival or surpass the leading smart contract network, Ethereum. However, it appears that Cardano’s reign is coming to an end, as network activity has slowed significantly.

At the beginning of the month, Cardano’s daily real volume had risen to $750 million passing through the network in a single day. However, as the digital asset’s price has fallen and investor sentiment has shifted negatively, its real volume has suffered.

Snoop Dogg’s NFT launch on the network boosted activity on the network, but this quickly faded. As a result, the real volume has been steadily declining. At the time of writing, the network’s daily real volume was as low as $37 million.

What Does This Mean for Cardano?

The price of any digital asset in the space can be easily linked to that asset’s network activity. As a result, the decline in real volume for Cardano spells more bad news for the digital asset’s value.
A surge in this real volume has usually been accompanied by a rise in the price of ADA. This means that with real volume down and no signs of it increasing anytime soon, there isn’t enough momentum to kickstart another recovery trend for the cryptocurrency.

Rather, as real volume continues to fall, the price of the digital asset is expected to fall as well. This could result in the value of ADA testing reaching $0.7 in the month of May. Despite the fact that this has historically been a bullish month, there is a chance that ADA will recover if the market does.

 

Cardano Price Prediction – Why $0.7800 Could Drive an Uptrend in ADA?

At the time of writing, ADA was trading at $0.82. The cryptocurrency is down 72.52 percent from its all-time high of September 2, 2021. However, the technical analysis is signaling a potential bullish reversal soon. Taking a look at the daily timeframe, the ADA/USD coin is heading lower, and it’s likely to gain immediate support at the $0.7810 level.

Previously, the same level had acted as major support, and now it has become a triple bottom pattern. Cardano may have a hard time violating this level, and therefore, the closing of candles above the $0.7800 level can trigger a bullish reversal. A surge in demand above the $0.7800 level could lead Cardano’s price towards the $0.9860 level. while the support level remains at $0.7800.

On the flip side, increased selling pressure could trigger a bearish breakout, leading Cardano’s price further lower towards the $0.7010 level. The RSI is holding in a sell zone, while the series of EMA lines are also suggesting a selling trend in Cardano. Let’s consider taking sell trades under the $0.9000 level. Good luck!