Markets
Cardano Surges as Crypto Market Recovers
Cardano (ADA), the eighth-largest cryptocurrency by market cap, has seen a notable 3.4% price increase over the past 24 hours.
Cardano’s price surge comes amid a 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 could be on the verge of a bullish reversal.
The cryptocurrency showed a “market character change” and broke above the resistance of a wedge pattern, suggesting a possible 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 market intelligence platform IntoTheBlock reveals that Cardano whales (those holding between 100 million and 1 billion ADA) have increased their holdings by 11% in the past 30 days, representing 6.71% of the total Cardano supply.
This accumulation of whales is considered a bullish sign, indicating that these large investors are positioning themselves for a possible price increase.
Technical analysis
The data indicates strong buying 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 trading at $0.3571 with a 24-hour trading volume of $370.8 million. Its market cap is $12.6 billion, representing 0.61% of the total cryptocurrency market cap, making ADA the 11th largest cryptocurrency by market cap.
Over the past year, Cardano (ADA) has increased in price by 23.6%, indicating a long-term positive trend. However, ADA has underperformed compared to 58% of the top 100 crypto assets and still lags behind major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). Cardano’s all-time high price of $3.09 was reached on September 2, 2021, while its all-time low 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 increase of 1500% to $7.80.