Cardano's price is poised for a potential increase of 260%, as the formation of an ascending triangle pattern and robust support from long-term holders indicate a possible breakout towards the range of $2.70 to $2.91.
Analyst Javon Marks has highlighted this potential surge, predicting a significant rise in ADA's value.
Cardano Price Eyes 260% Rally To $2.70
In recent days, Cardano's price has demonstrated a consistent recovery, marked by a significant 2.97% rise within the last 24 hours.
Crypto analyst Javon Marks notes that Cardano's chart exhibits an ascending triangle pattern, which is typically interpreted as a bullish continuation signal.
This pattern is characterized by the price forming higher lows while the resistance level remains largely unchanged.
The persistent higher lows indicate an increase in buying pressure, suggesting that buyers are prepared to acquire ADA at elevated prices.
As the ADA price approaches the upper resistance line of the triangle, the likelihood of a breakout increases.
Javon Marks suggests that a significant upward trend may occur if ADA surpasses the upper resistance level.
A comparable breakout previously led to an approximate 300% increase in price. Should this historical trend persist,
ADA could achieve its target price range of $2.70 to $2.91, reflecting a 261% profit. The repeated testing of the resistance level implies that a breakout could be forthcoming, presenting a promising opportunity for investors.
Long-term investors demonstrate trust in the value of Cardano.
Another element driving the optimistic perspective for ADA is the growth in long-term holders (Hodlers).
According to data from IntoTheBlock, there has been a consistent increase in the quantity of ADA held for more than one year, with the balance of Hodlers rising by 1.81%.
This information indicates a strengthening confidence among investors in Cardano's long-term prospects.
Furthermore, the number of medium-term holders (Cruisers) who possess ADA for a duration of 1-12 months has increased by 7.65%.
These trends imply that a greater number of investors are retaining their ADA instead of participating in short-term speculative trading.
Long-term investors typically gather assets during periods of market growth. The increase in the balance of Hodlers, which has experienced a 77.53% rise in holding duration over the past week, indicates that ADA investors have confidence in the project's future and are prepared to secure their investments.
This pattern corresponds with the overall market sentiment suggesting that Cardano is poised for a possible breakout, bolstered by the dedication of long-term investors.
Additionally, the balance of medium-term holders has also grown, indicating that a greater number of individuals are transitioning their ADA into longer-term holdings.
Is a Golden Cross on the Horizon for ADA's Price?
Alongside the chart pattern and the rise in long-term holders, various technical indicators bolster a favorable price forecast for Cardano.
One notable indicator is the 50-day Simple Moving Average (SMA), which is approaching a crossover above the 200-day SMA.
This crossover, known as the Golden Cross, frequently indicates the commencement of a significant upward trend, as it implies that the short-term momentum is strengthening.
Additionally, the open interest for Cardano's derivatives currently stands at $879.32 million, representing a 13.78% increase. This rise in open interest further reinforces Cardano's optimistic outlook.
Currently, the Relative Strength Index (RSI) stands at 70.79, indicating it is in the overbought territory.
Although this generally suggests an overbought situation, prices may still rise despite elevated RSI levels during a robust uptrend.
The upward movement of the RSI signifies that ADA retains its momentum, which aligns with Marks' prediction of a possible breakout.
Additionally, the Chaikin Money Flow (CMF) is another encouraging indicator, presently at +0.11.
This implies that there is a greater influx of capital into Cardano, demonstrating heightened buying pressure and sustained demand for ADA.
As long as the CMF remains in positive territory, the optimistic outlook for Cardano is expected to continue.
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