Markets
Cardano climbs as cryptocurrency market rebounds
Cardan (ADA), the eighth-largest cryptocurrency by market cap, has seen a notable price increase of 3.4% over the past 24 hours.
Cardano’s price surge comes amid broader context recovery in the cryptocurrency market. Bitcoin and Ethereum also saw slight gains of 2.5% and 2.2%, respectively.
Bullish reversal
Technical analysis on TradingView indicates that Cardano could be on the verge of a bullish reversal.
The cryptocurrency showed a “change in market character” and broke above the resistance of a wedge pattern, suggesting a potential shift towards a more bullish trend.
This positive price action is partly due to significant accumulation by whales or investors holding large amounts of ADA. Data 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 Cardano’s total supply.
Such a buildup of whales is seen as a bullish signal, indicating that these large investors are positioning themselves for a possible price increase.
Technical analysis
Data indicates strong buying support for Cardano around $0.36, which could help prevent a deeper correction. However, Cardano faces significant resistance around $0.50. According to technical analysis, the cryptocurrency needs to break above the $0.51 level on the weekly chart to confirm a bullish continuation.
At the time of writing, Cardano’s price is $0.3571, with a 24-hour trading volume of $370.8 million. Its market cap stands at $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 positive long-term trend. However, ADA has underperformed compared to 58% of the top 100 crypto assets and continues to lag behind major cryptocurrencies like Bitcoin (Bitcoin) and Ethereum (ETH). Cardano’s all-time high price of $3.09 was reached on September 2, 2021, while its all-time low of $0.01925 was reached on March 13, 2020.
The current market sentiment around Cardano is neutral, with a fear and greed index at 50. Despite the recent price drop, Cardano is showing positive future market activity. Based on historical breakout patterns, analysts like Javon Marks have predicted a potential short-term gain of 462% and a long-term upside of 1,500% to $7.80.