Cardano (ADA), the popular proof-of-stake blockchain, has been on a tear, soaring 144% in the past 15 days. Currently trading at $0.793, ADA has encountered a crucial resistance level. A successful breakout could potentially propel the cryptocurrency above the coveted $1 mark.
Whale Activity Fuels Bullish Sentiment
The recent surge in whale activity surrounding ADA has further ignited bullish sentiment. Large investors have significantly increased their ADA holdings, indicating strong confidence in the asset’s future performance. Additionally, Cardano’s social dominance has spiked, suggesting increased interest and discussion among crypto enthusiasts.
Technical Analysis – A Bullish Outlook
Technical analysis of the Cardano price chart reveals a bullish outlook. The cryptocurrency is currently battling a key resistance zone between $0.80 and $0.82. A successful break above this level could open the door for a rally towards $1. Subsequent targets include $0.89 and $0.9871, as indicated by Fibonacci retracement levels.
However, a failure to break above the resistance zone could lead to a potential pullback towards the $0.71 support level. A further decline below this level could signal a consolidation phase between $0.54 and $0.64.
Derivative Market Signals Bullish Bias
The derivative market also reflects a bullish bias towards ADA. The Coinglass liquidation map shows a significant imbalance between long and short positions, with long positions dominating. This suggests that traders are overwhelmingly optimistic about ADA’s future price movement.
The combination of strong price action, increasing whale activity, positive social sentiment, and bullish technical indicators suggests that Cardano is poised for further upside potential. While a pullback cannot be entirely ruled out, a successful breakout above the $0.80-$0.82 resistance zone could propel ADA towards the $1 milestone.
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.
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