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Cardano Soars as Crypto Market Rebounds
Cardano (ADA), the eighth largest cryptocurrency by market cap, has seen a significant price increase of 3.4% in the last 24 hours.
Cardano’s price surge comes in a broader context recovery in the cryptocurrency market. Bitcoin and Ethereum are also seeing slight gains, up 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 in market character” and has broken above the resistance of a wedge pattern, suggesting a potential shift into a more bullish trend.
This positive price trend is partly due to significant accumulation by whales or investors holding large amounts of ADA. Data A new report from 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 Cardano’s total supply.
This accumulation of whales is considered a bullish signal, indicating that these large investors are positioning themselves for a possible price increase.
Technical Analysis
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 needs to clear 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 cap is $12.6 billion, which represents 0.61% of the total cryptocurrency market cap, making ADA the 11th largest cryptocurrency by market cap.
Over the past year, Cardano (ADA) price has increased by 23.6%, indicating a long-term positive trend. However, ADA has underperformed 58% of the top 100 cryptocurrencies and is still lagging behind major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). The all-time high Cardano price of $3.09 was reached on September 2, 2021, while the 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 decline, Cardano is showing positive market activity going forward. Based on historical breakout patterns, analysts such as Javon Marks have forecast a potential short-term gain of 462% and a long-term surge of 1500% to $7.80.