Since the start of the month, Cardano (ADA) has traded within a defined range, encountering resistance at $0.36 and support at $0.31. Recently, however, buying pressure has gradually increased, suggesting a shift in market sentiment toward ADA.
As Cardano nears key resistance levels in the year’s final months, investors are closely watching for its next potential move.
Cardano Makes A Bold Move
Cardano is trading at $0.35 as of this writing, noting a 10% price surge over the past four days. This uptick has pushed the altcoin’s price above the Leading Span B (red line) of its Ichimoku Cloud. This indicator tracks the momentum of an asset’s market trends and identifies potential support/resistance levels.
Breaching the Leading Span B signifies that Cardano’s price is moving above a key support level within the Ichimoku Cloud. This is often seen as a bullish signal, suggesting that buyers are gaining control over the market.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
As its price approaches Leading Span A, Leading Span B acts as a support level for Cardano. If ADA can hold above Leading Span B and continue to trend towards Leading Span A, it may confirm the strength of the uptrend and suggest further upward movement.
The steady increase in Cardano’s On-Balance-Volume (OBV), now at 42.47 billion and up by 1% over the past four days, underscores growing demand for the altcoin. OBV, which tracks volume flow to forecast price shifts, shows that rising OBV signals increased buying pressure. In Cardano’s case, the concurrent rise in OBV and price confirms a potential uptrend.
ADA Price Prediction: The Cloud Is Key
The rise in Cardano’s holding time over the past week supports the bullish outlook above. IntoTheBlock’s data shows that the altcoin’s holding time — the average duration that investors hold onto their coins before selling them — has risen by 371% over the past seven days.
When holding time increases, it suggests that investors are feeling more confident about a coin’s long-term potential. It marks an accumulation phase in which investors are buying and holding coins, expecting future price appreciation.
Cardano’s breakout above the Leading Span A of its Ichimoku Cloud would establish the cloud as a vital support floor, providing an opportunity for the altcoin to target key resistance levels above.
If this happens, Cardano’s price will aim to breach the immediate resistance at $0.39. A successful move past this level could propel the altcoin to a four-month high of $0.47, marking a significant resistance threshold. Breaking through this barrier may set ADA on a path to soar by 68%, potentially reaching its 2024 peak of $0.81.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
Conversely, a surge in selling pressure could hinder Cardano’s ability to convert the Ichimoku Cloud into support. Such a failed attempt may lead to a retracement of recent gains, pushing the price down to $0.31. If bulls cannot defend this level, ADA could fall further to $0.27 as the year draws to a close.
Disclaimer
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Source: https://beincrypto.com/cardano-price-to-recapture-highs/