Cardano (ADA), currently ranked as the 10th-largest cryptocurrency by market cap, is navigating turbulent waters. Over the past week, ADA has recorded a 7.12% decline, reflecting broader market volatility and a bearish lean across altcoins. However, despite this downward pressure, several key indicators now suggest that Cardano may be on the verge of a breakout.
While price continues to slump, trading behaviour has shifted noticeably, fueling optimism among long-term holders and market watchers.
Trading Volume Turns Green Amidst Price Decline
According to the latest data from CoinMarketCap, ADA’s trading volume has experienced a significant turnaround. It climbed into positive territory, rising by 4.84% in just 24 hours. This translates to over $1.2 billion worth of ADA changing hands within a single day.
This uptick in volume, happening during a price dip, suggests that many investors are repositioning their portfolios. Some are likely locking in profits from earlier gains, but others are clearly viewing the pullback as a chance to buy the dip and accumulate more ADA ahead of a potential price breakout.
At the time of writing, Cardano trades at $0.7962, down 2.93% over the last 24 hours. Yet, in that same period, ADA has moved from a daily low of $0.7817 to a high of $0.8381, a strong intraday performance that may hint at underlying bullish strength.
This movement underscores growing speculation that the current price drop could be a bear trap, luring sellers in just before a reversal. The volume surge supports this theory and may reflect smart money accumulating in anticipation of a rally.
Bullish Sentiment Builds on July Growth and Technical Signals
ADA has already shown its capacity for strong moves. In July alone, the token has gained over 40%, reinforcing its position as one of the standout performers in the large-cap altcoin space.
Just 10 days ago, ADA made headlines by printing a “god candle”, a massive surge that took the price to $0.935, just shy of the psychological $1.00 resistance level. This rapid climb has reinvigorated investor confidence, sparking new speculation that ADA may soon reclaim and hold the $1 mark.
Market watchers now see the ongoing pullback not as a sign of weakness but as a healthy consolidation phase, especially given the coin’s recent price history.
Starstream Upgrade Could Trigger the Next Leg Up
One major reason for renewed optimism is the upcoming Starstream upgrade. Developers behind Cardano are preparing to roll out this critical overhaul, aimed at making the network more competitive, scalable, and efficient.
The Starstream update has the potential to significantly improve the performance of the Cardano blockchain, thereby boosting investor confidence. If successful, it could serve as the next catalyst for ADA’s price action, propelling it past the $1 threshold and into a new phase of growth.
Given the strength of Cardano’s community and the ongoing developer activity, many investors believe that ADA has both the technical foundation and market momentum needed to re-enter a sustained uptrend.
Related article: Cardano Set for Vertical Breakout? Analysts Eye $3 and Beyond as Bullish Momentum Builds
Final Thoughts: ADA’s Pullback May Be a Setup, Not a Signal to Exit
Despite the 7.12% dip over the past seven days, the 24-hour trading volume surge and ADA’s impressive rebound from $0.78 to $0.83 offer clear signs that the current price action might be misleading. With growing accumulation, high intraday volatility, and a highly anticipated network upgrade on the horizon, Cardano’s outlook remains dynamic.
As the market digests these movements, ADA could be staging a breakout, one that catches late sellers off guard while rewarding patient investors positioned for the next move. With the Starstream upgrade drawing closer and trading activity picking up, all eyes are now on Cardano as it attempts to flip the narrative from bearish to bullish.
