Cardano price jumped 0.8% during the U.S. trading session on Tuesday, reaching a trading value of $0.36 and a market cap of $12.7 billion. While this uptick follows broader market recovery, a crypto analyst highlights why the ADA $3 rally is inevitable.
Why Analyst Thinks Cardano Price Rally is Inevitable
In a recent tweet, crypto analyst Trendrider highlighted a bullish outlook for Cardano price concerning a recent development in the Chaikin Money Flow (CMF) Indicator. While the analyst addresses the prolonged consolidation trend of ADA, he drew the attention of his 20.4K followers to the fact that the price successfully avoided a lower low formation in the weekly chart.
Consecutively, the Chaikin Money Flow (CMF) indicator reveals a higher formation, suggesting increased buying pressure and a potential bullish shift in momentum. The indicator measures the volume-weighted average of accumulation and distribution over a set period, helping to identify buying or selling pressure in the market.
An observation from late 2020 accumulation shows this indicator’s switch to a positive region provided an early signal of the uptrend that hit the $3.1 All time high.
Cardano Founder Thinks ADA Can Flip Bitcoin (BTC)
During the fourth annual Cardano Summit 2024 in Buenos Aires, Charles Hoskinson shared his vision for Cardano and the network’s potential growth. He highlights how the network expanded into an 11-figure ecosystem from nothing with millions of users and its role as one of the largest blockchain research communities.
Hoskinson’s projection for the coming decade hints Cardano could surpass both the pioneer cryptocurrencies, Bitcoin and Ethereum, in terms of global influence. He highlighted that major governments may eventually adopt Cardano’s infrastructure for critical systems based on the network’s reliability and security.
Hoskinson’s long-term vision accentuates the team’s effort to make Cardano a cornerstone of blockchain technology.
ADA Price Analysis Hints a Major Breakout From Multi-month Consolidation
Over the past three months, the Cardano price shows a sideways action carried by a symmetrical triangle pattern in a daily chart. The altcoin resonating within two converging trendlines has pushed the asset to current trade at $0.36.
If the pattern acts as a suitable accumulation trend, the ADA price could surge 7.8% to challenge the key resistance trendline. An upside breakout will accelerate the bullish momentum and bolster the asset for an initial 48% surge to hit the $0.57 level.
On the contrary note, a bearish breakdown below the pattern’s lower trendline will invalidate the bullish thesis for prolonged correction.
Frequently Asked Questions (FAQs)
The analyst highlights the Chaikin Money Flow (CMF) indicator turning positive, which suggests increased buying pressure, signaling a potential bullish shift in momentum similar to the one seen before Cardano’s all-time high of $3.1.
The symmetrical triangle pattern shows Cardano’s consolidation over the past three months. If it breaks out above the upper trendline, this could trigger a 7.8% surge, with the potential to rally as much as 48% toward the $0.57 level.
Charles Hoskinson envisions Cardano surpassing Bitcoin and Ethereum in global influence, with major governments potentially adopting Cardano’s infrastructure for critical systems due to its reliability and security.
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/why-analyst-cardano-price-rally-to-3/
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