Popular altcoin project Cardano ($ADA ) has increased by 3% in the last 24 hours as of the date of writing. This increase follows an 11% decrease in the weekly chart, while it is around 7% in the monthly chart. The whale accumulation shown by the increase in large transactions indicates positive momentum in the ADA Price. This could lead to a 10% increase in the Cardan (ADA) price.
Could Cardano ADA Price Increase Further?
The ADA price chart is showing a clear downtrend overall. The price has recently formed a rising wedge pattern, which typically indicates a bearish trend.
Cardano price has support near $0.28, which is in line with the projected breakout target from the wedge formation and previous support zones.
There is resistance near $0.36-$0.38, where the 200 exponential moving average (EMA) (black line) currently sits. Additional resistance is also near the rising wedge upper boundary.
The pattern of recent candles inside the wedge suggests indecision but a slight bearish trend, especially considering that the wedge preceded a downtrend. Still, if ADA price action can rally and break above the 200 EMA, it would invalidate the bearish thesis.
The Relative Strength Index (RSI) is currently at 58.78, indicating neutral to slightly bullish momentum, but is approaching levels where it could turn bearish. Cardano’s price is below the 200 EMA, confirming a bearish reversal.
ADA has also broken above the 50 EMA (green line), indicating some bullish strength building. Chaikin Money Flow (CMF) at 0.03 is showing some slight capital inflow but not strong enough to counter the bearish pattern.
ADA price action is giving mixed signals. However, if it fails to climb above the 200 EMA, it could signal weakness from the bulls and the price could drop to $0.261 despite recovering markets.
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Increase in Network Activity May Affect Price!
Data from blockchain analytics firm Messari Research shows that Cardano network activity is increasing. The number of transactions has reached a two-month peak, while the cost of transactions on the network has fallen to a nine-month low. This suggests that the Cardano network is scalable and can handle more traffic without being expensive. A scalable network is a bullish signal for the price.
According to Coinalyze, Cardano’s open interest has increased by 6.16% in the last 24 hours, indicating capital inflows into the asset. With the rising price, the ADA price could continue to rise to the next major resistance around the 200 EMA. This would imply a 10% increase from the current price.
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