Cardano (ADA) has recently experienced a significant 3.4% increase in price over the past 24 hours, amidst a broader recovery in the cryptocurrency market. This positive price action is not unique to ADA, as Bitcoin and Ethereum have also seen slight gains of 2.5% and 2.2%, respectively. Technical analysis suggests that ADA may be on the verge of a bullish reversal, with a potential shift towards a more bullish trend.
One of the driving factors behind Cardano’s recent price rally is the significant accumulation by whales or large investors holding large amounts of ADA. Data from IntoTheBlock indicates that Cardano whales, with holdings between 100 million and 1 billion ADA, have increased their holdings by 11% over the past 30 days, making up 6.71% of the total Cardano supply. This whale accumulation is considered a bullish signal, indicating that these large investors are positioning themselves for a possible price surge.
While there is strong buy support for Cardano around $0.36, which could help prevent a deeper correction, the cryptocurrency faces significant resistance around $0.50. According to technical analysis, ADA must break above the $0.51 level on the weekly chart to confirm a bullish continuation. At the time of writing, Cardano is priced at $0.3571, with a 24-hour trading volume of $370.8 million, and a market capitalization of $12.6 billion.
Despite Cardano’s 23.6% price increase over the past year, it has underperformed compared to 58% of the top 100 crypto assets and lags behind major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). ADA’s all-time high price of $3.09 was reached on September 2, 2021, while its lowest price of $0.01925 occurred on March 13, 2020. The current market sentiment around Cardano is neutral, with the Fear & Greed Index at 50.
Analysts like Javon Marks have predicted potential short-term gains of 462% and a long-term surge of 1500% to $7.80 based on historical breakout patterns. Despite recent price fluctuations, Cardano shows positive future market activity. Investors and traders are advised to closely monitor Cardano’s price movements and technical indicators for potential trading opportunities and investment decisions.
Leave a Reply