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Will Cardano jump to $0.6 now? Key insights for ADA investors

2min Read

Cardano saw a brief rally to $0.5, but with trading volumes lagging, the sustainability of this uptrend remains uncertain.

Cardano closes the week strongly despite volume concerns

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  • ADA’s consecutive increase comes to an end.
  • Cardano has a chance to see a price rally.

Cardano [ADA] holders experienced a glimmer of hope as ADA concluded the week on a high note. The positive price movement was a welcome change, especially considering the significant decline ADA has faced in recent weeks.

However, a different narrative emerged when examining the volume chart, casting doubt on the sustainability of the recent trend.

Cardano ends the week on a high

Analysis of the Cardano price chart on a daily time frame revealed a strong finish to the past week. ADA experienced approximately an 8.3% increase on 20th April, closing the day near $0.5.

This surge marked a notable end to the consecutive uptrend that began on 18th April and provided a respite from the significant declines observed in the preceding week. 

Cardano price trend

Source: TradingView

At the time of this writing, ADA continued to trade around the $0.5 price range, with a slight increase of over 1.5%. However, despite the consecutive uptrends, ADA remained entrenched in a bear trend.

Examination of the Relative Strength Index indicates that it remained below the neutral line, signaling a lack of positive momentum in its price trend at the moment.

Cardano volume shows a lack of convergence

Analysis of the Cardano volume revealed a disparity between traders’ activity and the price movement. Despite the positive price trend, the volume did not exhibit the same level of excitement and has failed to surpass the $500 million threshold.

Although the volume surged to over $1.3 billion at the beginning of the week, it has since declined by more than half. At the time of this writing, the volume was around $402 million. 

Cardano volume trend

Source: Santiment

This discrepancy suggests a lack of convergence between price and volume, indicating a potential lack of sustainability in the price uptrend.

The stagnant volume implies a dearth of participation from traders, which is crucial for sustaining price increases. With increased volume, the current price trend may be able to maintain momentum.

Is your portfolio green? Check out the Cardano Profit Calculator

Interest in ADA sees a slight rise 

Examining the Cardano Open Interest on Coinglass revealed a notable decline in recent days. Despite a slight increase at the time of writing, it has yet to manage to reclaim previous levels.

At the time of this writing, the Open Interest was around $207.8 million, a significant drop from the over $400 million observed around 10th April. This trend in Open Interest indicates a reduction in the influx of cash into ADA.



Adewale is a full-time journalist at AMBCrypto. While he is increasingly fascinating by the world of blockchain and cryptocurrencies, Adewale holds a degree in International Relations. Besides working on insightful articles that touch upon the crypto-space's hottest issues, he finds joy in supporting Manchester United and Afrobeat music.
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