Cardano Price Analysis –Will 285M Bullish Orders Drive ADA to $0.50?

Price Insights:

• Cardano (ADA) price grew by 30% in November to seal its second consecutive positive month-on-month performance. 
• Bullish traders have placed active orders to purchase another 41.7 million ADA around the current prices, significantly outpacing sell orders. 
• Technical indicators show how ADA price could hit $0.50 if it breaks above the critical resistance area at $0.40.

Cardano (ADA) price grew by 30%, as it increased from $0.29 to $0.39 in November 2023. This seals its second consecutive positive month-on-month performance after posting 20% growth in October 2023. A vital on-chain trading metric shows that the bulls remain firmly in control of the ADA markets. 

After 20% and 30% gains in October and November respectively, how high can the ADA price reach in December 2023? 

Bullish Traders Place New Orders for 285 Million ADA 

Cardano price action in the last two months has been largely positive. But despite double-digit gains in October and November respectively, on-chain data trends show that the Cardano bulls are still gunning for more gains in December. 

IntoTheBlock’s Aggregate Exchange Order Books chart, is a vital on-chain metric that affirms this bullish outlook.

Recent readings from the trading logs of 10 crypto exchanges shows that the Cardano bulls currently have the upper hand. As depicted below, bullish ADA traders have placed buy-orders for 285 million ADA at an average price of $0.38. 

Meanwhile, the sellers have only put 276 million ADA coins up for sale around the current prices.  

The Exchange Order Books chart depicts the price distribution of the total buy/sell orders for an asset, across various crypto exchanges.  

Currently, Cardano market demand exceeds supply by nearly 20 million ADA. This a clear indication that the bullish traders are in the driving seat. 

Logically when demand for an asset exceeds market supply, the relative scarcity puts upward pressure on price as buyers often compete to get their orders filled quickly.  

In effect, many buyers may be inclined to raise their “bid’ prices in the days ahead. If the current market dynamic persists, this could drive ADA price toward $0.5 in December 2023.   

ADA Price Forecast: Can the Rally Reach $0.50 ?

Having reclaimed the $0.38 territory at the close of November 2023, the 285 million new purchase orders recorded this week puts ADA price in a prime position for more gains.

In the daily time frame, Bollinger Band technical indicator also confirms this outlook. It suggests that ADA price has recently broken above the 20-day Simple Moving Average price at $0.37. 

This alignment is a clear indication of rising bullish momentum.

However, the bulls could face significant resistance at the upper Bollinger band of $0.40. A decisive breakout above that range could see XRP price claim a new 2023 peak above $0.45.

On the downside, the bears could negate this positive ADA price prediction if they successfully force a downswing below $0.30. 

However, the support buy-wall around the lower Bollinger band at the $0.35 area will likely prove too strong in the short-term.