Cardano Price Hits $0.30: Is It Worth Buying ADA Right Now?

Key Insights

• Cardano price fails to break above $0.30
• Investor sentiment towards ADA is gradually changing to positive
• Aggregate orderbooks of exchanges say tipping point may be near.

The native blockchain token Cardano has made several failed attempts to reach the $0.30 mark since the US Securities and Exchange Commission (SEC) recognized ADA as a security in June.

Key on-chain metrics indicate that social sentiment around Cardano is gradually improving, and investors are again showing interest in the asset. We are looking into whether the bulls will be able to push ADA above an important resistance level.

Social Sentiment Around Cardano Gradually Improves

On June 9, the Weighted Santiment metric dipped to an all-time low of -3.01 amid the SEC lawsuit against Coinbase. Cardano founder Charles Hoskinson and the development team have made a concerted effort to address the centralization issues raised by the Commission. Their efforts seem to have had the desired effect: as of July 3, the figure was -1.11.

Weighted Santiment measures the overall sentiment of market participants towards an asset by comparing the number of positive and negative opinions. The chart above shows that optimism around ADA has continued to rise over the past few weeks. While the regulatory issues are far from being resolved, strategic investors may see this as a safe moment to re-enter the market.

ADA bulls try to wrest control from bears

After several weeks in a downtrend, the bulls seem to be taking control of the market momentum. The combined orderbooks of the exchanges show that traders placed orders to buy 57.7 million and sell 57.1 million ADA.

As you can see in the chart above, the dynamics between buy and sell orders is still in limbo. At the moment, demand is only 600,000 Cardano ahead of supply. However, given the improvement in the overall market sentiment, the bulls may take the opportunity to increase the number of buy orders in the coming days.

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It’s too early to hope for Cardano’s return to $0.40

Although Cardano is giving some bullish signals, it is too early to hope for a quick return to $0.40. First, ADA will have to break through the resistance of 421,179 wallets that bought 3.44 billion coins at an average price of $0.32 and can take profits.

However, the bears also have a good chance of triggering a new fall if the price of ADA drops back to $0.25. The 96,480 addresses that purchased 3.1 billion tokens at a minimum price of $0.27 could prevent the decline. But in case of failure, Cardano is waiting for a retest of the $0.25 mark.

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