Analyst Predicts Further Upside for Cardano (ADA) Following 20% Surge in 7 Days
The price of Cardano (ADA) has surged over 20% in the past week, currently standing at $0.37 at the time of writing, according to CoinGecko data. Short-term predictions for the cryptocurrency are optimistic, at least according to analyst Lockridge Okoth from FXStreet.
According to Okoth, the upward trend in Cardano's prices remains robust, showing no signs of exhaustion despite the nearly three consecutive weeks of gains.
"The market has seen the cryptocurrency surpass key levels, and now a continuation of the trend seems likely, driven by various bullish fundamentals," he stated.
Price Forecast for Cardano (ADA)
According to the analyst, if bulls increase their buying pressure, the price of Cardano could break the $0.37 resistance level and use it as a starting point to reach the $0.40 target.
In an extremely optimistic scenario, gains could extend, testing the upper range of $0.45 for the altcoin. If this bullish prediction holds, it would represent an appreciation of about 25% based on Cardano's current price.
As highlighted by the analyst, the Moving Average Convergence Divergence (MACD) is in the positive zone in a generally upward trend as more buyers enter the scene. Additionally, ADA's optimistic outlook is supported by the Market Value to Realized Value (MVRV) indicator, indicating that Cardano's price is not yet in the danger zone, leaving room for further gains.
Moreover, the analyst noted that social dominance and social volume metrics have also significantly increased, signaling a rise in mentions of ADA on social media. This is generally considered a bullish sign.
Another indicator reinforcing the optimistic projection is the rising number of daily active addresses engaging in transactions with Cardano.
"ADA investors continue to speculate, with the number of whale transactions moving more than $1 million in ADA also increasing".
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