Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has seen a significant 3.4% increase in its price over the past 24 hours. This surge comes amidst a broader recovery in the cryptocurrency market, with both Bitcoin and Ethereum also experiencing slight gains of 2.5% and 2.2%, respectively.
Technical analysis on TradingView suggests that Cardano may be on the cusp of a bullish reversal. The cryptocurrency has exhibited a “change of market character” and has broken above the resistance of a wedge pattern, indicating a potential shift towards a more bullish trend. This positive price action is likely fueled by significant accumulation by whales or investors holding large quantities of ADA.
Data from the market intelligence platform IntoTheBlock indicates that Cardano whales, those holding between 100 million and 1 billion ADA, have increased their holdings by 11% over the past 30 days. This represents 6.71% of the total Cardano supply. Such accumulation by whales is generally viewed as a bullish signal, suggesting that large investors are positioning themselves for a potential price surge.
While there is strong buy support for Cardano around $0.36, the cryptocurrency faces significant resistance near the $0.50 mark. According to technical analysis, Cardano must surpass 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 risen 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 its current position, Cardano’s all-time high price was $3.09 on September 2, 2021, with its lowest price at $0.01925 on March 13, 2020. The market sentiment around Cardano is currently neutral, with the Fear & Greed Index at 50. Analysts, such as Javon Marks, have predicted a potential short-term gain of 462% and a long-term surge of 1500% to $7.80 based on historical breakout patterns.
While Cardano has shown positive momentum in recent days, it still faces challenges in overtaking key resistance levels and outperforming its peers in the cryptocurrency market. Investors and analysts will be closely monitoring Cardano’s price movements to assess its potential for future growth and market activity.
