Cardano (ADA) continues to hover around the $0.30 and $0.35 mark as the token has struggled to break through important resistance levels over the past few days. This decline could be due to the selling pressure the cryptocurrency has been experiencing recently.

However, on-chain data shows that market participants are now channeling their capital into buying ADA around its current price. Will this bullish pressure lead to a significant rally?

Cardano Investors Prepare to Invest

Cardano is currently trading at $0.32, down 7% over the past week. However, data from IntoTheBlock suggests that some investors see this as a buying opportunity ahead of a potential market recovery.

According to Exchange On-chain Market Depth, a metric that tracks order books on 20 major exchanges, participants have placed orders to buy 220 million tokens. At the current price, that's worth more than $70 million.

On the contrary, the bears are trying to sell less than 170 million tokens worth about $52 million. With the buying volume outweighing the selling pressure, Cardano price could be set for an uptrend.

Read more: How to Buy Cardano (ADA) and Everything You Need to Know

Cardano Network Activity. Source: IntoTheBlock

Additionally, the network activity overview shows a significant increase in the metrics of new, zero balance, and active addresses. This overall growth means that user engagement on the Cardano blockchain is growing.

This also implies that the rate of adoption of ADA by new participants has recently reached impressive levels. This increase in traction may be due to the Cardano Chang hard fork that took place earlier this month.

If the situation remains the same, then the potential growth of ADA could be driven by positive crowd sentiment.

Cardano Network Activity. Source: IntoTheBlock

ADA Price Prediction: Altcoin Wants $0.38

A closer look at the chart shows that Cardano is still struggling to turn $0.32 into support. Notably, there is clear resistance at $0.34 that could hinder a potential upside.

However, BeInCrypto has identified a falling wedge on the daily chart, a bullish technical indicator. This suggests that ADA may have completed its latest downward move as it dipped to $0.30.

If the buying pressure continues, ADA could gradually rise, potentially reaching $0.38. However, if the token is rejected at $0.34, this upward trajectory may not materialize and the price could fall to $0.30.

Read More: 6 Best Cardano (ADA) Wallets to Consider in September 2024