Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, experienced a notable 3.4% price increase in the past 24 hours.
Cardano’s price rally occurs amid a broader recovery in the cryptocurrency market. Bitcoin and Ethereum are also seeing slight gains of 2.5% and 2.2%, respectively.
Bullish reversal
Technical analysis on TradingView indicates that Cardano may be on the verge of a bullish reversal.
The cryptocurrency has shown a “change of market character” and broken above the resistance of a wedge pattern, suggesting a potential shift towards a more bullish trend.
This positive price action is partly driven by significant accumulation by whales or investors holding large amounts of ADA. Data from the 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, making up 6.71% of the total Cardano supply.
Such whale accumulation is considered a bullish signal, indicating that these large investors are positioning themselves for a possible price surge.
Technical analysis
Data indicates strong buy 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 must break above the $0.51 level on the weekly chart to confirm a bullish continuation.
At the time of writing, Cardano is priced at $0.3571, with a 24-hour trading volume of $370.8 million. Its market capitalization stands at $12.6 billion, representing 0.61% of the total cryptocurrency market cap, making ADA the 11th largest cryptocurrency by market capitalization.
Over the past year, Cardano’s (ADA) price 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 is still lagging behind major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Cardano’s all-time high price of $3.09 was reached on September 2, 2021, while its lowest price of $0.01925 occurred on March 13, 2020.
The current market sentiment around Cardano is neutral, with the Fear & Greed Index at 50. Despite the recent price drop, Cardano shows 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 surge of 1500% to $7.80.
Read more: Cardano Founder: Crypto industry doesn’t need Bitcoin anymore