Thanks to the continued bull market in cryptocurrencies and whale accumulation, Cardano's price has risen for the fifth consecutive week this year. As bullish momentum fades, can ADA rise 165% and retest its all-time high of $3.10?
Cardano's price has risen due to whale purchases.
ADA price has risen over the past five weeks, reaching a high of $1.3230, the highest level since January 2022. This month's peak is up 450% from the lowest level in 2023.
The ongoing Cardano surge has led to a sharp increase in whale accumulation. Data shows that these whales have purchased $276 million worth of Cardano tokens, and this trend may continue as the altcoin season accelerates. Another analyst noted that whales bought 100 million ADA tokens in the past 24 hours.
Cardano has also attracted more retail investors who are eager to participate in the current bull market. Data from CoinCarp shows that the number of ADA holders has surged to over 3.5 million.
ADA price may fluctuate before soaring to $3.10.
The technical indicators suggest that the Cardano price may experience volatility, and even a slight pullback, before continuing its upward trend.
The weekly chart shows that the currency pair has encountered some resistance at $1.3230, which aligns with the 38.2% retracement level. It also appears to be forming a standard doji candlestick pattern. A doji is a formation that occurs when an asset closes and opens at the same price. It is characterized by a very small body and long upper and lower shadows, making it a popular reversal pattern.
Therefore, the most likely price prediction for Cardano is that it will first drop and retest the psychological level of $1, then resume its upward trend. Additionally, it may drop to $0.8090, which is the neckline of the triple bottom pattern at $0.2283. Furthermore, the relative strength index has moved to an extreme overbought point of 85.
Breakout and retest patterns are one of the most popular continuation patterns in the market. If this occurs, it is likely to first rebound to the 50% retracement level of $1.66. After that, it may rebound 165% to the all-time high, but this depends on whether the bull market in the crypto industry continues.
If it breaks below the neckline of the triple bottom pattern, the bullish outlook will be invalidated. Such a move would lead to a decline and a retest of the year-to-date low of $0.2480.