Cardano (ADA) has been on a tear, surging nearly 40% in the past month and reaching its highest price in two years, just shy of $0.80. This bullish momentum has investors excited, and analysts are now predicting a breakout to $1 in the short term, fueled by heavy accumulation from whales.
Despite the recent excitement, Cardano’s price has plateaued at around $0.7365 in the last 24 hours, with trading volume dipping as the market cools down. However, this shouldn’t overshadow the impressive 38% surge the token witnessed in just a week at the end of February. More importantly, ADA has held above $0.7 since reaching its new highs, indicating sustained investor confidence.
Analysts Predict $1 and Beyond
Capitalizing on this positive sentiment, analysts are chiming in with bullish predictions. Dan Gambardello, founder of Crypto Capital Venture, sees ADA hitting $1.5 soon. He shared a chart on X, highlighting a potential trading pattern suggesting a breakout towards this target.
Another analyst, Trend Rider, draws parallels between Cardano’s current movement and the 2021 bull run, where the token skyrocketed from $0.2 to its all-time high of $3. Trend Rider points to a “parabolic red line” on a chart, signifying an imminent price surge once crossed, similar to what Bitcoin experienced before reaching its record highs above $73,000.
Whale Activity Hints at Bullish Outlook
One can’t ignore the role of whales (investors holding large amounts of cryptocurrency) in market movements. In Cardano’s case, the signs are positive. Data from CoinMetrics reveals ongoing accumulation by the top 100 wallet addresses since the beginning of the month. Additionally, the top 1% of addresses have also been steadily adding to their ADA holdings, suggesting anticipation of an upcoming price increase.
Also Read: Cardano Rally Stalls at 60%: Can ADA Overcome 12.9% Short-Term Holder Surge?
Technical Indicators Align for Breakout
Cardano successfully surpassed the $0.75 resistance earlier in March. The next hurdle lies at $0.98, a level last breached in 2021 before the token hit its all-time high. Interestingly, analysts observe a similar expansion in Cardano’s Bollinger Bands compared to their 2021 trend, which preceded the surge past the $0.98 resistance.
Cardano’s future trajectory appears bright, with strong technical indicators, analyst predictions, and whale activity all pointing towards a potential breakout. However, investors should always exercise caution and conduct their own research before making any investment decisions.
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