Cardano (ADABitcoin (BTC), the eighth-largest cryptocurrency by market cap, has seen a significant price increase of 3.4% in the past 24 hours.
Cardano’s price surge comes amid a broader rally in the cryptocurrency market. Bitcoin and Ethereum are also seeing slight gains of 2.5% and 2.2%, respectively.
bullish reversal
Technical analysis on TradingView suggests that Cardano may be on the verge of a bullish reversal.
The cryptocurrency showed a “change in market nature” and broke through the resistance level of the wedge pattern, indicating a potential shift towards a more bullish trend.
This positive price action is partly due to the large accumulation of whales or investors holding large amounts of ADA. Data Market intelligence platform IntoTheBlock revealed that Cardano whales (those holding between 100 million and 1 billion ADA) increased their holdings by 11% over the past 30 days, making up 6.71% of the total Cardano supply.
This accumulation of whales is considered a bullish signal, indicating that these large investors are preparing for a potential price rise.
Technical Analysis
The data suggests that there is strong buying support for Cardano, around $0.36, which could help prevent a deeper correction. However, Cardano is facing significant resistance around $0.50. According to the technical analysis, the cryptocurrency must break above the $0.51 level on the weekly chart to confirm the continuation of the uptrend.
At the time of writing, Cardano is priced at $0.3571, with a 24-hour trading volume of $370.8 million. Its market cap is $12.6 billion, which represents 0.61% of the total cryptocurrency market cap, making ADA the 11th largest cryptocurrency by market cap.
Over the past year, the price of Cardano (ADA) has increased by 23.6%, indicating a long-term positive trend. However, ADA has underperformed 58% of the top 100 crypto assets and continues to lag behind major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Cardano’s all-time high 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 and Greed Index at 50. Despite the recent price decline, Cardano is showing positive market activity going forward. Based on historical breakout patterns, analysts like Javon Marks have predicted a potential short-term gain of 462% and a long-term rise of 1,500% to $7.80.
