Cardano (ADA) Price Prediction: Profit supply increases by 2.34 billion ADA, long positions are expected to rise further.

Today (4) during the Asian afternoon session, the price of Cardano (ADA) has fallen to 0.5870 USD, delaying the breakout rebound of the descending channel. The overall rebound this week has increased the supply of Cardano's ADA tokens by 2.34 billion, which may increase buying pressure. The technical outlook indicates that ADA is at a crossroads as the opposing market forces have delayed the breakout signal.

ADA supply increases, ADA rises to 2.34 billion in July

Santiment's data shows that the circulating supply of Cardano reached 18.23 billion ADA on Friday, up from 15.89 billion ADA on Tuesday. So far in July, the circulating supply of ADA has increased by 2.34 billion, aligning with the weekly rebound trend, which may increase buying pressure.

The supply of profitable coins refers to tokens purchased or transferred at prices below the market price. However, a significant increase in supply may pose potential risks of profit-taking.

ADA focuses on channel breakout, with a target price of 0.71 dollars

FXStreet analyst Vishal Dixit stated that after a 10% rise in the past two days, there has been a loss of momentum, leading to a pullback of more than 1% as of the writing of this article on Friday. The Thursday high was $0.6119, closing at $0.5992, indicating that supply exceeds demand.

Connecting the resistance trend line of the highs on May 23 and June 10 with the support trend line of the lows on May 19 and June 5 forms a descending channel pattern. ADA is hovering near the resistance trend line during the intraday pullback, striving for a decisive bullish closing signal to indicate a breakout.

If ADA maintains a bullish trend at the daily close, the upward trend may target the low of 0.7100 USD on May 19.

The technical indicator signals are inconsistent. The Moving Average Convergence Divergence (MACD) indicator shows that the green bars have started to soar from the zero line, indicating that the trend momentum is shifting towards bullish. However, the MACD and signal line are still deep in the negative territory, indicating that there is still room for upward movement before a trend reversal signal is generated. The Relative Strength Index (RSI) has fallen back to 47 from the midpoint, reflecting the difficulty in regaining bullish momentum.

The downside is that if the daily closing price of ADA falls below Thursday's opening price of 0.5840 USD, it may drop to the support level of 0.5419 USD from the daily closing price on June 22.

(Source: Trading View)