Cardano price has oscillated within a narrow range since the beginning of the month. The altcoin has faced resistance at $0.36 and has found support at the $0.33 price level.
However, things are about to change. With rising demand for ADA, the coin is primed to break through this resistance and extend its uptrend. But how soon could it happen?
Cardano Traders Begin to Fill Their Bags
Cardano is currently trading at $0.35, positioned above its Ichimoku Cloud. The Ichimoku Cloud is a key indicator used to assess market trends, momentum, and support and resistance levels.
When an asset’s price stays above the Ichimoku Cloud, it indicates a bullish trend. In this scenario, the Cloud acts as a dynamic support level, suggesting that buyers are in control.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
Moreover, Cardano’s Balance of Power (BoP) confirms the uptick in buying activity in the market. This indicator, which measures the strength of buyers versus sellers in the market, is at 0.44 at press time. A positive BoP suggests buyers are in control and attempting to push the asset’s price higher.
Notably, Cardano whales have increased their trading activity, as evidenced by the coin’s surging large holders’ netflow, which has skyrocketed by over 1000% over the past seven days.
Large holders refer to addresses that hold more than 0.1% of an asset’s circulating supply. When their netflow spikes, it signals that whales are accumulating the asset, which is a strong bullish indicator. This can spark increased interest from retail investors, leading to further accumulation and potentially driving the asset’s price higher.
ADA Price Prediction: Coin May Reach Four-Month High
If buying activity gains momentum, Cardano’s price will break above the $0.36 resistance level. A successful breakout of this level could pave the way for a rally toward $0.48, a price last seen in June.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
However, if buying pressure fades and selling activity increases, Cardano’s price may be pulled back to its support at $0.33. Should the bulls fail to defend this level, the price could decline, potentially reaching $0.30.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/cardano-gearing-up-for-rally/
2024-10-14 07:51:45
