Cardano Market Analysis: ADA/USD sets the stage for another bullish assault

Cardano (ADA) hit the recent recovery high at $0.0903 on June 4 and has been on retreat ever since. At the time of writing, ADA/USD is changing hands at $0.0816, down over 4% in the recent 24 hours. Despite the sell-off, the coin is still nearly 75% on a month-on-month basis. It takes 11th place in the global cryptocurrency rating with the current market capitalization of $2.11 billion and an average daily trading volume of $274 million.

ADA's on-chain data

Cardano project has enjoyed a steady flow of positive fundamentals recently. Thus, according to cryptocurrency data provider Intotheblock, the number of addresses holding ADA hit the all-time high at 385,080. The record figure was reached on June 3. 

Cardano, or the so-called ‘Ethereum Killer’ is looking sharp as the Shelley protocol transition is fast approaching. The total number of addresses holding ADA reached its ATH on June 3, with 385.08 thousand addresses.

This trend may be a result of a wealth transition process where coins are redistributed from whales to retail users, making ADA more decentralized and more widely adopted.

ADA/USD: Technical picture

On the intraday charts, ADA/USD dropped below 4-hour SMA50 at $0.0850 with the next focus on $0.0800 and $0.0740 reinforced by 4-hour SMA100. It is closely followed by $0.0720, which is the previous highest level of 2020. THis area is likely to stop the downside correction and serve as a jumping-off ground for the upside move.

On the upside, once $0.0850 is out of the way, ADA/USD may extend the recovery towards $0.0900 that stopped the bulls in the beginning of June. The RSI on the 4-hour chart stays close to the oversold territory and shows sighs of reversal.

ADA/USD 4-hour chart