Cardano Price Surge Faces Resistance at $0.37: What’s Next for ADA?

Cardano Price Surge Faces Resistance at $0.37: What’s Next for ADA?

Cardano’s price saw a notable surge on August 23, hitting a resistance level around $0.37. However, the asset has since stagnated as bulls faced rejection at this key level. Traders are now in a state of indecision, uncertain whether the recent rally was just a temporary hype or the beginning of a more significant movement. Meanwhile, the Cardano X community is buzzing with speculation about a potential Pump.fun derivative launching on the network. Could this new development finally give ADA the momentum it needs to reach $0.50?

Cardano Price Prediction: Can a Pump.Fun Derivative Propel ADA?

Cardano’s price has started to make some moves, climbing 2.1% to reach $0.3765. Despite this, ADA remains two ranks below Tron (TRX) and Dogecoin (DOGE), after briefly re-entering the top 10 cryptocurrencies. The price is struggling to break through a strong resistance level, but rumors of a Pump.fun derivative launching on the ADA network could provide the necessary catalyst for further price increases.

Speculation suggests that three different projects are currently working on launching a derivative of the popular Solana-based token-launching platform. Among these, the most anticipated is Snek.fun, a project from the Snek (SNEK) team, which is behind the largest meme coin on the Cardano network. However, no official launch date has been announced yet.

Traders in Limbo as Whales Make Their Moves

On-chain analysis indicates some bearish tendencies among ADA investors. It remains to be seen whether sentiment will shift as the news about Snek.fun spreads.

Data from Santiment highlights a bearish price-volume divergence on Cardano, with ADA’s price rising from August 16 to August 23 while transaction volume declined. This suggests that the current buying momentum is weak and may not sustain, potentially allowing bears to push the price lower.

Moreover, data from IntoTheBlock reveals an increase in whale activity from August 18 to August 22, followed by a drop in large holder netflow from August 21 to August 22. This could indicate that whales are cautiously offloading their holdings in anticipation of a price drop.

Futures traders also appear uncertain, as reflected in their trading behavior. Data from Coinglass’s Liquidation Map shows nearly equal amounts of ADA shorts and longs, though short positions slightly outnumber longs, hinting at a mildly bearish market sentiment.

Open interest (OI) in ADA futures has increased by 0.7% over the past 24 hours, while the price has decreased by 1.1%. This divergence suggests that traders are opening more short positions, which could lead to further price declines.

ADA Price Analysis: $0.50 Within Reach if Key Resistance Is Overcome

Despite a short-term recovery, ADA remains in a broader downward trend, as the price is still trading below the 200-day EMA. The recent price candles show indecision near the 50-day EMA ($0.3773), indicating that the market is at a crossroads between continuing the downtrend or reversing course.

Should Cardano’s price break above the $0.3773 resistance, the next target could be $0.4368, representing a 19.74% increase from its current level.

The MACD line remains below the signal line, signaling weak bullish momentum, while the histogram is beginning to turn positive. This suggests that the downtrend may be losing steam, though it’s not yet a strong buy signal.

The Chaikin Money Flow (CMF) indicator, with a value of 0.08, shows a slight inflow of capital, which is bullish. However, like the MACD, this signal isn’t strong enough to confirm a significant upward move.

If ADA fails to break and sustain above $0.3773, it could confirm market weakness, potentially leading to a further drop to $0.3145, which would invalidate the current bullish outlook.