Cardano price surged on Aug. 21 before encountering a resistance of around $0.37. The asset has mostly stagnated around this price as bulls got rejected. Most traders are showing indecision as they are still determining whether the hype is over or that was just the first wave. In the meantime, speculation is circulating in the Cardano X community about an incoming Pump.fun derivative on the network. Will cornering the Cardano meme coin niche finally give ADA the juice to hit $0.5?
Cardano Price Prediction: Can a Pump.Fun Derivative Rescue ADA?
The price of Cardano barely moved over the last day. It dropped only 1.1% to $0.3715 and lost two ranks to Tron (TRX) and Dogecoin (DOGE), after briefly entering the top 10. Nevertheless, this is better than a full-fledged bearish reversal.
While Cardano price struggles to break above a strong resistance, rumor just broke out of a Pump.fun derivative coming to the ADA network. This may be just what is needed to unclog the price.
According to the speculation, three different projects are working on launching a derivative of the famous Solana-based token-launching platform.
So, we have ANOTHER pump fun derivative coming.
We already have two that are cooking.
One is launching today, and the other is launching sometime after….… pic.twitter.com/RtgcQ1caQR
— Opti (@store_optimal) August 22, 2024
The most anticipated launch is Snek.fun from the Snek (SNEK) team, the largest meme coin on the Cardano network. There is no official date yet as to when the launch will happen.
Traders Undecided While Whales Checkout
On-chain analysis reveals some bearish tendencies in ADA price and investors. Whether the sentiment will change as the Snek.fun news settles is yet to be seen.
Data from Santiment shows a bearish price-volume divergence on Cardano. ADA price rose from Aug. 16 to Aug. 22 while transaction volume dropped, indicating that the price buy momentum is weak and won’t hold. Consequently, bears may take over and drive the price lower.
Additionally, the large transaction volume metric from IntoTheBlock shows that whale activity increased from Aug. 18 to Aug. 22. Moreover, the Large holder netflow dropped from Aug. 21 to Aug. 22, indicating that whales may be offloading their bags cautiously anticipating a price drop.
Futures traders are also uncertain about the future, and the doubts are reflected in their trading behavior. Liquidation Map data from Coinglass shows an almost equal amount of ADA Shorts and Longs. However, the Shorts positions are slightly higher, signaling that the market is slightly bearish on ADA price.
ADA open interest (OI) increased by 0.7% over the last 24 hours, while the price dropped by 1.1%. This divergence suggests that traders are opening shorts, which may lead to further price drops.
ADA Price Analysis: $0.5 In Sight If It Overcomes This Obstacle
Although there’s a short-term recovery, ADA price is generally in a downward trend since the price is trading below the 200-day EMA. The recent candles show indecision near the 50-day EMA ($0.3773), indicating that the market is trying to decide between continuing the downtrend or starting a reversal.
If Cardano price breaks above $0.3773, it may target $0.4368 as the next resistance level, a 19.74% increase from the current price.
The MACD line is still below the signal line, showing weak bullish momentum, and the histogram is starting to turn positive, suggesting that the downtrend may be losing strength, but it’s not a strong buy signal yet.
The Chaikin Money Flow (CMF) value of 0.08 indicates a slight inflow of capital, which is bullish. However, like the MACD, it’s not strong enough to confirm a significant upward movement.
Cardano price prediction shows that if the asset fails to break and hold above $0.3773, it may confirm market weakness, leading to a further drop to $0.3145. This would invalidate the current bullish thesis
Frequently Asked Questions (FAQs)
Snek.fun is a highly anticipated project from the Snek (SNEK) team, which is the largest meme coin on the Cardano network.
For Cardano to reach $0.5, it must break the $0.3773 resistance and maintain an upward trend. While a Pump.fun derivative could boost momentum, market sentiment is currently mixed, with cautious optimism tempered by potential downside risks.
If ADA fails to break and hold above the $0.3773 resistance level, it could confirm market weakness and lead to a further price drop, potentially down to $0.3145, which would invalidate the current bullish thesis.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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