Cardano (ADA) has successfully surpassed the $1 threshold, a landmark achievement last seen in April 2022. This resurgence indicates a pivotal moment in ADA’s recovery journey. Over the past 24 hours, ADA has experienced an impressive surge of over 25%, reaching a peak of $1.09.
This extraordinary leap has ignited excitement among traders and market analysts, with many predicting that this momentum could herald a more significant upward trend.
Expert Insights and Market Trends
Prominent cryptocurrency analyst Ali Martinez emphasizes that Cardano’s recent uptrend is reminiscent of its earlier bullish cycles. Within the last three weeks, ADA has soared nearly 200%, fueled by robust on-chain activity, positive technical indicators, and substantial whale investments.
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Martinez suggests that these elements point to prolonged bullish momentum, hinting at the possibility of further price escalation.
One of the primary catalysts for ADA’s ascent has been the accumulation by whales. Wallets holding between $1 million and $10 million ADA have significantly increased their holdings over the past month, driving daily large transaction volumes to exceed $22 billion.
This accumulation phase reflects strong confidence among major investors, which historically signals the potential for extended upward movements.
Key Support Levels
Currently, ADA is trading at $1.08, and analysts underscore the critical importance of the $0.80 support level, which has paved the way for this rally.
On-chain data reveals that approximately 48,000 addresses accumulated around 1.2 billion ADA within the $0.78 to $0.80 range, establishing a solid price floor.
This accumulation phase has now translated into a robust base, enabling ADA to surpass the $1 mark with confidence. Maintaining this foundation is vital for providing strong downside protection in case of market corrections.
With Cardano securely above $1, analysts are now targeting higher resistance levels. Historical price patterns suggest ADA could potentially climb to $6, provided it maintains its bullish momentum.
Trading Shot’s analysis aligns with this optimistic outlook, highlighting that ADA is poised for further upward movement after forming a one-day golden cross, its first since November 2023. This significant technical signal indicates a strong shift toward bullish dominance, with the next key target set at $1.40.
Derivatives Market and Investor Sentiment
The bullish case for ADA is further bolstered by a surge in derivatives market activity. Data from CoinGlass shows a 151.10% increase in trading volume, reaching $7.49 billion, reflecting heightened market participation and enthusiasm.
Open interest has also risen by 36.48%, reaching $985.58 million, suggesting increased confidence among traders opening new positions.
Long/short ratios on major exchanges such as Binance and OKX reinforce this sentiment, with ratios of 2.2 and 2.35, respectively, indicating that long positions significantly outweigh shorts.
Additionally, liquidation data reveals that over the past 24 hours, short liquidations amounted to $12.39 million, far exceeding long liquidations of $6.87 million, suggesting a short squeeze that often propels prices upward.
Cardano’s growing traction across leading platforms indicates strong bullish momentum, making it an attractive opportunity for investors and traders seeking short-term gains.
Moreover, discussions about Cardano on social media are at an 11-month high, as noted by data from Santiment.
Over the past 17 days, Cardano has tripled its market cap, demonstrating extraordinary growth and renewed enthusiasm among investors. Recently, ADA recorded over $165 million in realized trader profits, the highest in eight months. This surge in social and market activity signals growing community engagement and optimism about Cardano’s long-term potential.
More Bullish Projections
Adding to the optimism, analyst Av_Sebastian observes that ADA appears primed for further gains. While the RSI at 84.60 suggests ADA is overbought, hinting at a possible short-term pullback, the newly established support levels at $0.90 and $0.80 provide stability.
The breakout from the bullish triangular pattern indicates potential upward continuation, with $1.25 as the next target.
ADA Price Analysis
At the time of reporting, Cardano was trading at $1.08, with a one-day gain of 24%. On the weekly chart, ADA remains up 41%, highlighting its strong recovery and bullish potential.
As Cardano sustains its upward trajectory, analysts are closely monitoring for further breakouts, suggesting the current rally could signal the start of a more extended bullish cycle.
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