Cardano price hits $0.30: is it worth buying ADA right now
Date: 2023-07-04 Author: Karina Ziganova Categories: BLOCKCHAIN
The native token of the Cardano blockchain has made several unsuccessful attempts to reach the $0.30 mark since the U.S. Securities and Exchange Commission (SEC) recognized ADA as a security in June.
Readings from key on-chain metrics report that social sentiment around Cardano is gradually improving, and investors are showing interest in the asset again. Let's see if the bulls will be able to push ADA above the important resistance level.
Social sentiment around Cardano is gradually improving
On June 9, Weighted Santiment readings sank to an all-time low of -3.01 amid an SEC lawsuit against Coinbase. Cardano founder Charles Hoskinson and the development team have made a concerted effort to address the centralization issues raised by the Commission. Their efforts seem to have had the desired effect: as of July 3, the figure was -1.11.
Weighted Santiment measures the overall sentiment of market participants towards an asset by comparing the number of positive and negative opinions. The chart above shows that optimism around ADA has continued to grow over the past few weeks. Although regulatory problems are still far from being resolved, strategic investors may regard this as a safe moment to re-enter the market.
ADA bulls try to win control from bears
After several weeks spent in a downtrend, the bulls seem to be seizing control of market momentum. The aggregate order books of the exchanges show that traders placed orders to buy 57.7 million and sell 57.1 million ADA.
As you can see in the chart above, the dynamics between buy and sell orders are still in limbo. At the moment, demand outstrips supply by only 600,000 Cardano. However, given the improvement in the overall mood in the market, the bulls may take advantage of the opportunity and increase the number of buy orders in the coming days.
It's too early to hope for Cardano to return to $0.40
Although Cardano is giving some bullish signals, it is too early to hope for a quick return to $0.40. First, ADA will have to break through the resistance of 421,179 wallets that bought 3.44 billion coins at an average price of $0.32 and can take profits.
However, the bears also have every chance of provoking a new drop if the price of ADA drops again to $0.25. The 96,480 addresses that purchased 3.1 billion tokens at a minimum price of $0.27 could prevent the decline. But in case of failure, Cardano is waiting for a retest of the $0.25 mark.
