Cardano (ADA) has recently made waves in the cryptocurrency market, marking its fifth consecutive week of gains. This impressive streak, which is the longest of the year, has been largely fueled by the ongoing crypto bull run and significant whale accumulation. With the current momentum showing signs of slowing down, investors are now asking: can ADA surge by 165% and retest its all-time high of $3.10?
Whale Purchases Fuel Cardano’s Bullish Trend
The ADA price rally has been one of the most notable in recent months. Over the past five weeks, the coin has reached a high of $1.3230, its highest level since January 2022. At its peak, Cardano saw a staggering 450% increase from its lowest point in 2023. This price surge has been supported by both institutional investors and retail participants.
Whale activity has played a significant role in the recent rally. According to on-chain data, whales have been actively accumulating Cardano tokens, purchasing a total of $276 million in ADA. In just the past 24 hours, whales added 100 million ADA to their holdings, further bolstering the coin’s bullish outlook. Retail investors have also been eager to get in on the action, with the number of ADA holders now surpassing 3.5 million, according to CoinCarp data.
BREAKING: Cardano whales have bought
— Julia (@CryptoJulzss) December 5, 2024
$276 million worth of $ADA over the past
seven days.
Are you bullish enough? pic.twitter.com/j44orA8RLM
Cardano Price Outlook: Potential Pullback Before Rally
Despite the strong upward momentum, technical analysis suggests that ADA may experience some turbulence before pushing higher. On the weekly chart, ADA has encountered resistance at the $1.3230 level, which aligns with the 38.2% retracement of its previous price move. Additionally, a doji candlestick pattern has formed, indicating indecision in the market. A doji is often seen as a reversal signal, suggesting a possible pullback before any further gains.
The most likely scenario for ADA in the short term is a drop to the psychological support level at $1.00, followed by a continuation of the uptrend. If the price dips below this level, the next key support zone could be around $0.8090, which corresponds to the neckline of a triple-bottom pattern.
If Cardano can hold these support levels, it may soon find itself back on an upward trajectory. A break above current resistance could propel ADA to the 50% retracement level at $1.66, setting the stage for a potential rally toward its all-time high of $3.10. This would represent a 165% gain from current levels.
Bullish Momentum Dependent on Crypto Market Continuation
However, Cardano’s path to $3.10 is not guaranteed. The broader crypto market’s continued bullish momentum will play a crucial role in ADA’s potential for such a significant rally. If the crypto market faces a downturn or if ADA drops below its key support levels, the bullish outlook could be invalidated, with the price potentially testing its year-to-date low at $0.2480.
In conclusion, Cardano’s current price action is encouraging, but investors should remain cautious as ADA may experience some short-term volatility. If the crypto bull run continues, ADA could indeed see a dramatic rise, pushing it toward its all-time high.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano (ADA) Poised for All-Time High? Analyst Predicts $3 Surge in 60 Days
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