In the midst of a broader market recovery, Cardano (ADA) has seen an impressive 3.4% price increase in the past 24 hours. This positive trend is further supported by Bitcoin and Ethereum’s gains of 2.5% and 2.2%, respectively. Technical analysis suggests that Cardano may be on the brink of a bullish reversal, as it has displayed a “change of market character” and broken above a resistance wedge pattern, signaling a shift towards a more bullish trend.
One of the key factors contributing to Cardano’s recent price surge is the significant accumulation by whales, or investors holding large amounts of ADA. Data from IntoTheBlock shows that Cardano whales, holding between 100 million and 1 billion ADA, have increased their holdings by 11% over the past 30 days, comprising 6.71% of the total Cardano supply. This accumulation by large investors is seen as a bullish signal, indicating their confidence in a potential price surge.
While there is strong buy support for Cardano around $0.36, preventing a deeper correction, the cryptocurrency faces significant resistance at $0.50. To confirm a bullish continuation, Cardano must surpass the $0.51 level on the weekly chart. At the time of writing, Cardano is trading at $0.3571, with a 24-hour trading volume of $370.8 million and a market capitalization of $12.6 billion, making it the 11th largest cryptocurrency by market capitalization.
Long-term Growth Potential
Despite its recent positive price action, Cardano has underperformed compared to a majority of the top 100 crypto assets and lags behind major cryptocurrencies like Bitcoin and Ethereum. With its all-time high price of $3.09 in September 2021 and the lowest price of $0.01925 in March 2020, Cardano has shown a long-term positive trend, with a 23.6% price increase over the past year. However, analysts like Javon Marks predict even greater gains, with a potential short-term increase of 462% and a long-term surge of 1500% to $7.80, based on historical breakout patterns.
The recent bullish trend in Cardano (ADA) underscores the potential for a significant price surge in the near future. With strong buy support and whale accumulation driving positive market activity, Cardano may be poised for further growth and a breakout to higher price levels. Investors and traders are advised to monitor key support and resistance levels to capitalize on potential price movements in Cardano.
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