Cardano Price Holds at $0.50 Support, Trading Volume Surges 54%

According to CryptoPotato, Cardano's price began Tuesday at $0.50, situated in the convergence zone between two 60-day trend lines with key support at $0.50. As a result, ADA tokens are displaying some intriguing market signals. The Ethereum competitor and blue-chip cryptocurrency is exhibiting interesting technical signals, such as a falling wedge and surging trading volume. Furthermore, as Cardano's price remained above $0.50 while testing falling resistance in January, the number of ADA holders with losses recovered significantly. Cardano's price has maintained its $0.50 support since a major rally from $0.38 to $0.67 in the first week of December. However, it faced two sharp tests from bears on January 7 and January 25. Meanwhile, ADA repeatedly tested falling resistance at $0.62 in the last week of December, $0.58 in the first week of January, and $0.53 in the last week of January. Consequently, the support line at $0.50 is about to converge with the falling line of resistance, forming a falling wedge pattern on the Cardano price chart. This is often an indication of a reversal to a bullish trend channel with the price rising again. However, resistance can also continue falling, breaking support and reversing to a bearish trend. According to CoinGlass data, ADA token trading volume surged 54% in 24 hours on Wednesday, demonstrating that the market is shuffling around to take positions based on bullish or bearish predictions. The combined sales of spot and derivatives markets for ADA nearly reached $1 billion on Wednesday, moving almost 6% of the digital smart contract token's total market capitalization. Santiment data reveals that the 30-day Market Value to Realized Value (MVRV) for Cardano price has recently recovered from -17% to -3%. This means that nearly all ADA token owners are holding the asset at a profit. Crypto Capital Venture founder Dan Gambardello recently predicted that the ADA price will skyrocket to $11 in 2025, resulting in a $400 billion market capitalization for ADA.