- DEX volume on Cardano has surged 9% in the past week, with Minswap still dominating the network and accounting for 80% of the volume.
- Analysts remain bullish, pointing out that ADA has recorded an inverse head and shoulders pattern, which signals upcoming bullish movements.
Trading volume on the Cardano network’s decentralized exchange (DEX) ecosystem has seen an uptick in the past week, leading to speculation that it could give ADA a platform to record gains.
In the past week, the network recorded $19.86 million in trading volume for its DEXes, an 8.77% surge, according to data from DeFiLlama. But as we reported, this has been one of the very few metrics on Cardano that have seen a rise in recent weeks as most others dipped despite an overall market resurgence.
Minswap remains Cardano’s leading DEX, posting $15.25 million in trading volume, and accounting for 80% of the entire ecosystem’s volume. Minswap recorded a 20% uptick in the past week, compensating for some of its rivals which had a bad week, such as second-placed SundaeSwap, whose volume dipped 21%.
As we reported a week ago, Misnwap launched its V2 version to offer cheaper and more secure transactions. It also came with new features such as auto-routing, which ensures that traders get the best deals.
What’s Next for Cardano’s ADA?
ADA trades at $0.4321, gaining less than 1% in the past day, below the industry average of 2.33% but in line with its closest peers on the charts including Toncoin and TRON. In the past week, it has traded sideways and is only up by 1.5% for a $15.5 billion market cap.
According to one analyst, despite the lack of momentum, ADA could surge soon. He noted that the token had recently broken above its 50-day moving average, and the last time it did this, it resulted in a rally. The analyst says the target is $0.60-$0.70.
Another analyst, Chris O, the co-founder of the Cardano Ghost Fund DAO, noted that ADA has formed the inverse head and shoulders pattern, which signals impending bullish movement.
#Cardano fam, nice looking inverse head & shoulders forming on the $ADA daily 🙂 @Cardano pic.twitter.com/YEkIkOI9SP
— Chris O (@TheOCcryptobro) July 19, 2024
Others point to the reversal of a downtrend that has been in place since March, which they say will result in sustained gains, possibly taking ADA to $0.83.
However, some renowned analysts insist that ADA is unlikely to make any substantial gains in the near future. Lark Davis, one of the industry’s most famous voices with over 1.2 million X followers, noted on Friday that ADA and XRP are unlikely to yield any returns for investors.
Additionally, data from IntoTheBlock shows that only one in four ADA holders are in the money today. An overwhelming 66% of ADA owners are in the red, which equates to 2.96 million wallet addresses.
In stark contrast, 89% of Bitcoin owners are in the money, with Ethereum closely trailing at 82%. Even the leading meme coin Dogecoin’s profitability is above 75%.
