Cardano’s Volume Surges: A Sign of Strength? – BlockNews.com

• Cardano’s trading volume surged 60% in 24 hours, pushing it back above $1 billion and boosting its price from $0.89 to $0.96.
• The Balance of Power (BOP) indicator spiked to 0.85, signaling strong bullish momentum that could drive ADA’s price above $0.98.
• If bullish pressure persists, ADA could target $1.09 or higher, but a break below $0.88 may invalidate this recovery trend.

After dipping below $1 billion in trading volume on Jan. 13, Cardano (ADA) has seen a remarkable 60% increase in the past 24 hours, reclaiming the billion-dollar mark. This renewed interest has coincided with a price rebound from $0.89 to $0.96, suggesting buyers are stepping back in.

Volume and Price Rebound: A Bullish Indicator?

Cardano’s rising volume is a critical signal of directional strength. When volume increases alongside a price uptick, it often suggests that the rally has strong backing. If this trend continues, ADA could aim for $1.24, its yearly high from 2024.

However, falling prices with rising volume typically indicate growing bearish momentum—a cautionary note for traders watching ADA closely.

Balance of Power Favors the Bulls

The Balance of Power (BOP) indicator, which measures the tug-of-war between buyers and sellers, has spiked to 0.85on ADA’s daily chart. This positive value indicates bullish dominance, hinting at potential upward movement beyond $0.98 in the near term.

Still, maintaining this momentum depends heavily on the bulls continuing to outpace bearish pressure.

Price Prediction: Will ADA Hold Its Ground?

Following its recent dip to $0.89, Cardano appears to be forming a V-shaped recovery pattern, similar to its rally to $1.03 earlier this month. If the bullish momentum persists, ADA could climb to the 0.786 Fibonacci level at $1.09, with the potential to approach $2 if buying pressure intensifies.

On the flip side, if sellers regain control and push the price below the $0.236 Fibonacci level, ADA could drop back below $0.88, invalidating the bullish outlook.

Final Thoughts

Cardano’s recent surge in volume and positive indicators like the BOP show encouraging signs for a recovery. However, traders should monitor key resistance and support levels to gauge whether ADA can sustain its upward momentum or face another pullback.