Cardano: Key levels to consider with the bulls back

ADA holders enjoy a sigh of relief as the bulls reclaim some losses.
Cardano’s relatively weak dApp growth offers little confidence in ADA demand.

Holders of Cardano’s native cryptocurrency ADA are still nursing their June losses so far, but there is a ray of hope. The cryptocurrency is already attempting recover but should holders anticipate more turbulence ahead?

Perhaps it’s best to look back further at ADA’s performance to understand the magnitude of its recent crash. It crashed by slightly over 42% since the start of June. For perspective, its current monthly low is now ADA’s lowest price tag on a YTD basis. In contrast, both Bitcoin and Ethereum still managed to maintain a premium above their YTD lows.

Bullish excitement reclaims some recent losses

Who would have thought that ADA would give up all its 2023 gains? Nevertheless, the crash may have offered another unique opportunity to purchase the cryptocurrency at a steep discount. Many traders happen to think so because the number of daily active addresses grew drastically within the last 3 days.

Source: Santiment

The increased address activity reflects the positive sentiment shift within the last 7 days. This is because investors anticipated a sizable recovery rally. Increased address activity also yielded a significant volume uptick since the start of this week.

On the other hand, the mean coin age dropped slightly in the last 2 days. This metric reveals when coins held for some time exchange hands. In this case, the downside in the mean coin age metric may be interpreted as a sign of short-term profit-taking by those that recently bought the dip.

Short-term profit-taking will likely limit ADA’s potential upside. Despite this, ADA’s $0.279 press time price already represents a 26.89% rally from its lowest price level in June (so far).

Source: TradingView

The strong recovery so far is because of heavy accumulation while deep in the oversold zone. But can it sustain the current trajectory? Well, the answer depends on multiple factors including the prevailing state of the crypto market, as well as Cardano’s future prospects.

ADA will likely reclaim the $0.30 and $0.33 price levels if it maintains its current bullish momentum. The aforementioned levels previously represented key support and resistance levels in the past.

Cardano has certainly struggled to grow at a rapid pace like some of its counterparts such as Ethereum. But just how much growth is Cardano achieving? A recent analysis looked into account growth on Cardano dApps. A few of them have so far achieved explosive growth but the majority of the top dapps are still struggling to secure attractive growth numbers.