Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has seen a significant 3.4% increase in price over the last 24 hours. This surge in Cardano’s price comes as part of a broader recovery in the cryptocurrency market, with Bitcoin and Ethereum also experiencing slight gains of 2.5% and 2.2%, respectively.
Analysts are now suggesting that Cardano may be on the brink of a bullish reversal, with technical analysis on TradingView indicating a potential shift towards a more bullish trend. The cryptocurrency has shown a “change of market character” by breaking above the resistance of a wedge pattern, which is typically seen as a positive sign for future price movements.
One of the factors contributing to Cardano’s positive price action is the significant accumulation by large investors, also known as whales. Data from the market intelligence platform IntoTheBlock shows that Cardano whales, those holding between 100 million and 1 billion ADA, have increased their holdings by 11% in the past month, now making up 6.71% of the total Cardano supply. This accumulation by whales is often seen as a bullish signal, suggesting that these large investors are preparing for a potential price surge.
In terms of technical analysis, Cardano has strong buy support at around $0.36, which could prevent a deeper correction. However, the cryptocurrency faces significant resistance at the $0.50 mark. Analysts suggest that Cardano must break above the $0.51 level on the weekly chart to confirm a continuation of the bullish trend.
As of the time of writing, Cardano is trading at $0.3571, with a 24-hour trading volume of $370.8 million and a market capitalization of $12.6 billion, making it the 11th largest cryptocurrency by market capitalization. Over the past year, Cardano’s 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 still lags behind major cryptocurrencies like Bitcoin and Ethereum. 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 recent price fluctuations, many analysts believe that Cardano has positive future market potential. Based on historical breakout patterns, experts like Javon Marks have predicted a potential short-term gain of 462% and a long-term surge of 1500% up to $7.80 for Cardano. This indicates that there may be significant growth opportunities ahead for the cryptocurrency.