Cardano on the Brink of a 30% Breakout

• Cardano (ADA) has been predicted to rise as high as $10 as it breaks out of a falling wedge to breach a crucial psychological level. 
• Another analyst has pointed out the formation of a bullish price pattern that could see ADA hitting $1.3 and $1.7. 

Cardano (ADA) recently recorded a yearly high of $1.318 after breaking crucial resistance levels and riding on Bitcoin’s ascension. However, the asset has since declined and has been trading within a tight range. According to our market data, $1.25 currently exists as a crucial resistance level where selling pressure becomes stronger. Based on our analysis, ADA has failed to break into this level multiple times. However, this could be breached in the coming days.

According to our analysts, there is a formation of a bullish flag and a pole price action pattern in the four-hour price chart. If ADA successfully breaks above the $1.25 point, it will continue to reach $1.63 in just a few days. For now, this bullish outlook is confirmed by the Relative Strength Index (RSI) which is around 54. Technically, this is below the overbought zone.

Looking into on-chain data, we discovered that whale activities have been increasing. According to Coinglass data, ADA’s spot inflow/outflow currently shows a significant outflow of $98.37 million. What this implies is that whales, institutions, and retail investors have significantly transferred their holdings for self-custody. Such activities mainly result in price surges since selling pressure reduces significantly on centralized exchanges.

Analysts Speak on Cardano (ADA)

Analyzing a thesis on the TradingView page, we found that ADA has created a new buying opportunity as it breaks out of a falling wedge pattern. According to the thesis, the first price target for the asset would be $1.4600. From there, ADA could target $1.6100 before proceeding to the final psychological level at $1.89. The move from the current position to the final target would represent a 57% surge.

For analyst Aksel Rom, ADA is getting tighter in the formation of a symmetrical triangle price pattern in the 30-minute timeframe. According to him, the asset would easily breach $1.25 and hit $1.3269. From this point, it could stage a 29% surge to hit $1.7080.

Subjecting the asset to critical analysis, crypto YouTuber and analyst Lark Davis has marked ADA for an 800% surge. According to him, the asset could easily hit $10 behind the Fibonacci level score of 3.618. Throwing more light on this, Davis stated that the asset would hit $3.16 in the short term, and proceed to hit $4.80 in a 332%. From here, ADA could likely continue its run to the Fibonacci level score of 2.618, at around $7.70.

In a YouTube Video, Davis further disclosed that Cardano could surge by 10 times the current market capitalization to around $370 billion. Fascinatingly, his prediction alludes to a recent position by a CryptoQuant analyst which estimates that the Bitcoin bull run is about to start. Historically, this would have a Ripple effect on the altcoins including ADA.

The steady decline in Bitcoin reserves across all crypto exchanges indicates that we are likely in the middle of a sustained bull run. Some market participants who have not properly accumulated Bitcoin earlier are likely doing so now, realizing that this is likely the last downward correction before another upward price surge.

At press time, ADA was trading at $1.2 after surging by 3% in the last 24 hours.

Recommended for you: