Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has recently experienced a notable 3.4% price increase in the past 24 hours. This surge comes amid a broader recovery in the cryptocurrency market, with Bitcoin and Ethereum also seeing slight gains of 2.5% and 2.2%, respectively.
Technical analysis on TradingView suggests that Cardano may be on the verge of a bullish reversal. The cryptocurrency has shown a “change of market character” and broken above the resistance of a wedge pattern, indicating a potential shift towards a more bullish trend. This positive price action is partly attributed to significant accumulation by whales or investors holding large amounts of ADA.
Data from the market intelligence platform IntoTheBlock reveals that Cardano whales (those holding between 100 million and 1 billion ADA) have increased their holdings by 11% over the past 30 days, accounting for 6.71% of the total Cardano supply. This whale accumulation is considered a bullish signal, suggesting that these large investors are positioning themselves for a possible price surge. Additionally, there is strong buy support for Cardano around $0.36, which could help prevent a deeper correction.
Despite the positive momentum, Cardano faces significant resistance around $0.50. According to technical analysis, the cryptocurrency 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.
Over the past year, Cardano’s price has increased by 23.6%, indicating a positive long-term trend. However, ADA has underperformed compared to 58% of the top 100 crypto assets and lags behind major cryptocurrencies like Bitcoin and Ethereum. Despite this, analysts predict positive future market activity for Cardano, with potential short-term gains of 462% and a long-term surge of 1500% to $7.80 based on historical breakout patterns.
The recent surge in Cardano’s price and whale accumulation signals indicate a potential bullish reversal for the cryptocurrency. However, it still faces resistance levels and market challenges that need to be overcome for sustained growth and price appreciation. Investors and traders should closely monitor Cardano’s price action and market sentiment for potential trading opportunities and strategic decision-making.
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