Cardano price dives 2.78% to $0.37 during the U.S. trading session on Monday. This bearish turnaround followed the Bitcoin dip to $63500 as most major altcoins are recuperating from their strength after last week’s rally. Will the renewed recovery momentum push ADA price toward $1, or are sellers preparing for a major correction?
Cardano Price Rebounds Amid Reversal Pattern and Whale Buying
The Cardano price has remained an underperforming asset so far in 2024, registering a year-to-end (YTD) loss of 37% to trade at $0.37. The daily chart analysis shows a falling channel pattern, characterized by two downsloping trendlines driving the current downtrend in ADA price.
However, as no trend remains the same in an established coin, the chart pattern offers an opportunity for reversal if the price breaks above the overhead trendline. Amid the recent market rally, the Cardano price surged above the 20-day Exponential moving average, signaling the initial shift in market sentiment.
With sustained buying, the ADA price is poised for a 10% jump before challenging channel pattern resistance. The potential breakout will signal the end of correction and lead to a 37% rally to $0.5.
Despite a prolonged correction, the ADA coin has witnessed notable accumulation from addresses holding 1 to 10 million coins since mid-July. According to the Santiment data, the metric has stabilized at around 5.72 billion ADA.
This accumulation hints that big players anticipate a future price recovery or take advantage of current price levels to build their positions.
ADA Price Faces Setback Amid Rising Transaction Costs
Moreover, the Cardano coin price has recently garnered market attention with a sudden spike in its transaction fees. According to Messari data, the Average transaction fee for the Cardano network spiked to $0.2. The rising fees are typically linked to the growing project demand as more users compete for network space.
However, as Cardano is known for its scalability and affordability, balancing network growth and affordable transaction costs will be crucial. If fees remain elevated, it could deter some projects from building on Cardano, especially given the competition from other blockchains offering lower transaction costs.
Therefore, the Cardano price rally to $1 seems to be a long-term goal and is less likely to reach this target by the end of Q3.
Frequently Asked Questions (FAQs)
Cardano’s transaction fees have surged to $0.2, raising concerns about the network’s scalability and affordability
While Cardano is nearing a potential breakout from its current downtrend, the rising transaction fees and overall market conditions make it less likely that ADA will hit $1 by the end of Q3.
The accumulation of ADA by large holders (addresses holding 1 to 10 million coins) suggests that big players anticipate a future price recovery.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/is-cardano-price-expected-to-hit-1-again/
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