Cardano (ADA) price trades at $0.821 as it prepares for a major breakout rally to $1.137. The bullish odds are high as Charles Hoskinson boldly defended the redemption mechanism rumors. Additionally, the Open Interest (OI) has come close to hitting $1 billion, which shows investor interest is high. Will these conditions concoct a 50% rally for Cardano?
Cardano Price Analysis Targets $1.17
Cardano price trades at $0.821 after surging by almost 2% this week and 19% last week. However, the ADA faces short-term resistance near $0.837, resulting in a consolidation stage. This hampers the inverted head and shoulders breakout rally seen on the 4-hour ADA chart.
With a neckline overlapping the $0.75 zone, Cardano price action formed the bullish inverted head and shoulder pattern as marked in the technical chart. The 49.85% breakout target calculated by adding pattern’s depth to the $0.75 neckline coincides with the previous peak at $1.137. Hence, the $0.837 breakout could catalyze the next big move for the altcoin. Notably, a minor resistance is present at $0.983, an in-between peak reflecting volatility closer to the $1 psychological mark.
Supporting the $1.17 price target, MACD and signal lines prepare for a positive crossover to restart an uptrend. Furthermore, the Relative Strength Index (RSI) momentarily dropped from overbought zone to halfway line, a bearish divergence resulting in the consolidation stage. However, the RSI takes a V-shaped reversal from the halfway line, suggesting resurfaced buying pressure.
Optimism Sparks as Open Interest Nears $1 Billion
With the overnight recovery in Cardano, optimism surged in ADA futures. The OI jumps by 6.61% to reach $987 million, nearing the $1 billion milestone. Additionally, the funding rate spike to 0.0141% reveals the increased bullish activity. Hence, the derivatives traders are likely anticipating an uptrend continuation in ADA prices.
Charles Doubles Down on Off-Chain Sweep Defence For Unredeemed Vouchers
Boosting the optimism, Charles Hoskinson slams the rumors of unclaimed vouchers again. Initially, Charles explained the sweep of unredeemed Genesis UTXOs (voucher holders) as a crucial security and compliance step. As many original voucher buyers failed to redeem ADA, the process was moved from an “on-chain process” to an “off-chain sweep” to ensure reduced fraud risk.
Finally, Charles added that proper communication was maintained with the unredeemed voucher purchasers. The wider community was kept out of the broadcast, as it would’ve increased the risk of scammers targeting the buyers. The bold and logical move was part of the Shelley upgrade.
Frequently Asked Questions (FAQs)
Cardano’s current price is $0.821, with a potential target of $1.137 based on the inverted head and shoulders pattern.
The MACD and signal lines are preparing for a positive crossover, and the RSI has taken a V-shaped reversal from the halfway line, indicating resurfaced buying pressure.
Open Interest has jumped 6.61% to $987 million, nearing the $1 billion milestone, and the funding rate spike reveals increased bullish activity.
Coingape Staff
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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/can-cardano-price-reach-1-17-hoskinsons-strong-stand-on-redemption-fuels-optimism/
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