Cardano (ADA), the eighth largest cryptocurrency by market capitalization, has seen an increase in trading activity, with its 24-hour trading volume reaching $2 billion, according to CoinMarketCap data.
The increase in trading volume signals renewed interest in the cryptocurrency, as traders capitalize on the recent dip to reenter the market.
After five consecutive days of declines, Cardano (ADA) slightly rebounded in Tuesday’s session. Cardano, which struggled under selling pressure amid broader market weakness, has turned green as buying activity resurfaces.
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Bitcoin likewise recovered from a four-month low as traders snapped up cryptocurrencies hit by the recent sell-off in risk assets. ADA found support near $0.647, prompting traders to step in and drive the price upward.
Cardano price action
At press time, Cardano was up 2.28% in the last 24 hours to $0.706, following five consecutive days of declines.
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Cardano’s recent drop caused it to fall below the moving averages, indicating that bears were aggressively selling. Continued bearishness over the weekend pushed the ADA price below its daily moving average of 50 at $0.814. The sell-off worsened, with the ADA price marking every day of this week in red, causing ADA to briefly fall below the daily SMA 200 at $0.689.
The daily SMA 50 has turned downward, suggesting that the bears have a little edge. The support on the downside is around $0.58 and then $0.50. The daily RSI is slightly below the midpoint, indicating consolidation in the near term.
On the other hand, any relief rally would almost certainly be met with selling at the moving averages. Buyers will need to push and hold the ADA price above the daily SMA 50 to signal a return. ADA might then target $1.
While the ADA price is presently in the green, the next few days will be key in evaluating if this bounce is the start of a fresh uptrend or a short relief rally.