Cardano Price Forecast: Bull Traders Seek another 250 Million ADA after 15% Profits

Cardano price surged above $0.47 on May 4 bringing its monthly timeframe gains to 15% mark. With more demand piling up across exchanges, ADA appears poised for another leg-up. Here’s Why ADA Could Reach $0.60 in May 2024

Cardano Surges 15% as Bulls Pile on 250M ADA Buy Orders

ADA price struggled for momentum in April 2024, as the crypto market entered a correction phase. At the close of April 30, Cardano price ADA price at a two-week low of $0.43.

That significantly low price appears to have drawn investors towards ADA when the crypto market recovery phase began in May.

The chart above shows how Cardano price has rapidly climbed 15% from $0.43 on April 30, to reach a daily timeframe peak of $0.47 at the time of writing on May 4.

Cardano’s price struggles in April were largely attributed to the declining traction across the Cardano DeFi ecoystem. Investors withdrew over 36 million ADA from Cardano-native DeFi  protocols during the course of the month, which triggered a 35% tailspin in prices.

Cardano Bull Traders Seek another 250 Million ADA after 15% Profits

With the DeFi yet to recover, on-chain data trends reveal that swing traders aping-in on the overall crypto market rebound this week may be the main catalyst behind ADA’s 15% price bounce.

This stance is further affirmed by IntoTheBlock’s Exchange On-chain Market Depth chart, which depicts to current volumes of active buy/sell orders listed for an asset across recognized exchanges and trading platforms.

Amid falling DeFi TVL, the aggregate exchange order books data shows bullish swing traders have seized control of the Cardano spot markets in the last few days. As seen above, the current market-depth data shows that bull trader have listed active orders to purchase 251 million ADA at the average price of $0.47.

Meanwhile the bears have only listed 230 million ADA for sale. Effectively, there’s now an excess market demand for 20 million ADA.

Going by the basic law of demand and supply, when buy orders exceeds active sell orders by such a large margin, it increase the likely hood of further price surge, as buyers may have to compete for the fewer orders by raising their bids. This explains why Cardano price has surged 15% in the last 3 days.

If this rare market dynamic remains tilted in the bulls favor, investor can anticipate further upside in the days ahead.

ADA Price Forecast: Demand Surge Could Spark $0.60 Retest

Cardano price looks set to reclaim the $0.60 milestone in the days ahead, considering the current excess demand of over 20 million ADA. However, this lofty target will not be a cake walk for bulls as IntoTheBlock’s GIOM data highlights a sell-wall looming large at $0.50.

As depicted above, 181,620 addresses had bought 2.26 billion ADA at an average price of $0.49. If they opt to book early profits, Cardano price could struggle to reclaim $0.50 territory.

But if the bulls can scale that sell-wall, ADA could advance toward $0.60 before facing a more significant resistance cluster.