The price of Cardano (ADA) has made several failed attempts to reach $0.30 since the SEC labeled ADA a “security” in June. On-chain data shows ADA could offer another buying opportunity in the coming days. But can the bulls keep a tight rein this time?
Public sentiment around Cardano has gradually improved over the past month. Still, the bulls have struggled to break above the $0.30 resistance. Is the ongoing rally a new buying opportunity?
Market sentiment around Cardano is improving
On-chain data shows that Cardano’s Weighted feel slid to a low of -3.01 on June 9 in the wake of the SEC lawsuit against Coinbase.
Cardano founder Charles Hoskinson and the development team have created joint efforts to address SEC centralization concerns. In recent weeks, the ADA community has responded positively.
As of July 3 ADA Weighted feel currently sits at -1.11. While the overall outlook is still mostly aggressive, it’s a 63% improvement from the all-time low on June 9.
Weighted feel measures the overall market perception around an asset by comparing the ratio of positives to negatives.
The chart above shows that the optimism around ADA has continued to rise in recent weeks. While regulatory concerns are far from being resolved, strategic investors could interpret this as a safe time to re-enter the market.
If the Cardano team offers more decentralization and compliance assurances, the ADA price could retest $0.40 as market perception continues to improve.
The Bulls struggle with control from the Bears
After weeks in a bearish downtrend, the bulls now appear to be taking control of market momentum. Although a small margin, aggregated exchange order books show that the bulls have now placed more buy orders than the market supply.
Currently, the bulls have placed orders to buy 57.7 million ADA coins. Meanwhile, the traders have put up for sale only 57.1 million ADA coins.
The Exchange on-chain market depth shows the total buy and sell limit orders placed for an asset on recognized crypto exchanges.
As seen above, the momentum between the buy and sell orders is still quite hanging in the balance. As things stand, demand only exceeds supply by a small margin of 600,000 ADA.
However, given the improvement in overall market sentiment, the bulls could seize the Cardano buying opportunity and bring in more orders in the coming weeks.
ADA Price Prediction: Too Early to Target $0.40?
While Cardano has issued some bullish on-chain signals, it is still too early for the bulls to set high targets to reclaim $0.40. This is because Cardano could face a significant pullback around $0.32.
In that zone, 421,170 investors who bought 3.44 billion ADA at the average price of $0.32 made some profit.
However, if the bulls can push that resistance aside, ADA could immediately retrace $0.35.
Still, the bears also have a good chance of forcing another downswing if the ADA price drops back to $0.25. Although 96,480 investors who bought 3.1 billion Cardano at the reserve price of $0.27 could prevent the decline.
But if support falls, the ADA price could drop to $0.25
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions.