Cardano saw major investors, known as whales, purchase over 130 million ADA during a recent dip, boosting its price recovery. This buying activity helped ADA recover, pushing its price above $0.99. Now nearing the crucial $1 mark, investors are closely watching to see if this altcoin can break through and move higher.
Is Cardano Ready for a Big Rally?
Crypto analyst Ali pointed out that the recent surge in ADA purchases signals strong confidence in its long-term potential. The whales focused on buying tokens around $0.30, which has proven to be a strong support level. Such accumulation often signals a bullish outlook for retail investors. The altcoin is currently priced at $0.9898, up 6.19% in the last 24 hours and 18.47% over the past week. With a trading volume of $3.11 billion and a market cap of $35.39 billion, it shows strong momentum.
Trading within a range of $0.773 to $1.12 this week, the continued demand is driving this upward trend. Moreover, ADA shows stability with support at the 20-day SMA of $0.756. The widening Bollinger Bands suggest potential price swings as it nears resistance. With an RSI of 74.66, it’s slightly overbought, but strong buying interest could maintain upward momentum despite possible short-term dips.
Will ADA’s Momentum Push Past $1?
With $0.30 as solid support and $1.00 as key resistance, investors are feeling optimistic about Cardano’s future. The MACD is still bullish, showing strong upward momentum as ADA tests the critical $1 resistance level. While there’s cautious optimism in the market, technical indicators and whale activity point to solid momentum.
However, broader economic factors and Bitcoin’s performance could influence ADA’s direction. If it breaks above $1, it could open the door to even more gains. Some short-term dips might happen as the market adjusts to its recent rise.
In line with this, Rose Premium Signals’ chart analysis identifies key price targets for ADA: resistance at $1.1563, followed by $1.3658 and $1.5403. Traders are also watching the 0.786 Fibonacci retracement level as an important reference. Keeping an eye on key price levels and focusing on long-term goals could be smart for investors as ADA keeps trending upward.
What’s Driving Confidence in This Altcoin?
Investor confidence in Cardano is growing, with data showing strong long-term commitment. On November 27, 2024, Coinglass reported a $2.82 million net outflow of ADA, as more tokens moved into private wallets, potentially easing selling pressure.
IntoTheBlock data reveals that 70% of ADA holders are in profit, and 71% have held their positions for over a year, showing a solid base of dedicated investors. With ADA’s price closely tracking Bitcoin’s bullish trend (0.94 correlation), market sentiment remains positive.
Previously, ADA saw a 35% increase a day after Charles Hoskinson shared his plans to engage in U.S. crypto policy under the Trump administration. This announcement sparked increased investor interest, driving ADA’s price and trading volume higher. As a result, it surged 77%, fueled by growing optimism in the broader crypto market, partly driven by potential regulatory shifts and recent economic developments.
Conclusion:
Cardano’s whale activity and strong technical signals indicate it’s gearing up for a potential breakout. However, with the crypto market’s natural volatility, caution is essential as ADA tests the $1 resistance level. The outlook is optimistic, but staying focused on market shifts and long-term trends will be crucial for those aiming to make the most of its growth.
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