Cardano (ADA), a blockchain platform known for its smart contract capabilities, is currently in the midst of a critical phase. After several days of market consolidation, ADA is now testing a crucial resistance level that could lead to a significant price surge. The question on many traders’ minds: Is Cardano set to soar?
Recent price action suggests that the digital asset might be on the verge of a breakout. As market sentiment begins to shift, the conditions seem ripe for Cardano to potentially soar by 13%, with some analysts forecasting a rise to $0.85 if it manages to break through key resistance levels.
Over the past few days, Cardano has been consolidating in a narrow price range between $0.699 and $0.75. This period of consolidation has kept the price relatively stable, but the recent surge suggests that ADA is approaching a tipping point.
On the daily time frame, ADA has reached the upper boundary of this tight range, with $0.75 acting as the level to watch closely. This level is proving to be a significant hurdle, and breaking through it could lead to a sharp upward movement. According to technical analysts, if ADA manages to close above $0.76 on either a daily or four-hour chart, it could trigger a rally that might see the asset soar to $0.85 in the coming days. This marks a potential price increase of approximately 13%.
To fully understand Cardano’s potential, let’s take a closer look at the key technical levels that traders should keep an eye on.
The most immediate resistance is at the $0.76 mark. This level has been tested several times, and ADA has struggled to close above it consistently. If Cardano manages to close above this resistance, it could pave the way for a rapid rise, potentially reaching the next key level at $0.85. This would mark a significant 13% increase from the current price.
On the flip side, the lower support level to watch is at $0.712. This marks the point at which Cardano has seen some buying interest during the consolidation period. If ADA falls below this level, it could signal a reversal or prolonged downtrend. However, the overall trend seems to be leaning toward a bullish breakout, making this support level less likely to be tested in the short term.
Another critical factor in Cardano’s current price action is the 200 Exponential Moving Average (EMA), which is near the $0.75 mark. This moving average is a common technical indicator used to gauge long-term trends, and its proximity to ADA’s current price suggests that it could act as a strong resistance level in the near term. If ADA can break above this 200-EMA, it would further confirm the bullish sentiment and increase the likelihood of a continued upward move.
The Relative Strength Index (RSI) is another key indicator for ADA. Currently, the RSI is sitting at around 60, which suggests that the asset still has room to rise before becoming overbought. This is a positive sign for bulls, as it indicates that Cardano may have the momentum to push past the $0.76 resistance and reach new highs.
Cardano’s price movements are not just driven by technical indicators. Market sentiment plays a crucial role, and current data suggests that traders are increasingly optimistic about ADA’s prospects.
On-chain analytics from Coinglass indicate that there is a strong bullish sentiment surrounding ADA. Traders are currently heavily invested in long positions, with $18.25 million worth of long positions on the table. At the same time, there are $8.50 million worth of short positions, which could be at risk of liquidation if the price surpasses the critical $0.76 level.
This creates a potential for a short squeeze, where traders who have bet against ADA may be forced to close their positions, further propelling the price upwards. In fact, if ADA breaks above $0.76, the $8.50 million in short positions could be liquidated, potentially adding fuel to the rally.
In addition to retail traders, whale activity and long-term holders are also contributing to the positive outlook for Cardano. Data from spot inflows and outflows reveal that ADA tokens have been flowing out of exchanges since March 13, signaling accumulation by larger investors. This behavior suggests that long-term holders are betting on the future success of Cardano, adding further confidence to the market.
As Cardano approaches the critical $0.76 resistance level, traders and investors alike will be watching closely to see if the asset can break through and establish a new trend. The current market conditions, along with strong on-chain data, suggest that ADA could be gearing up for a significant price surge.
If ADA manages to breach $0.76 and maintain momentum, a move to $0.85 could be on the horizon. However, traders should remain cautious of any downside risk, particularly if the price fails to hold above $0.712. For now, it’s clear that Cardano is at a pivotal juncture, and the coming days could determine whether it’s set to soar.
In conclusion, Cardano’s price action is indicating a potential for a significant breakout, with key resistance levels at $0.75 and $0.76. If these levels are broken, ADA could see a price surge of up to 13%, potentially reaching $0.85. The bullish on-chain metrics and accumulation by whales further support this positive outlook. However, investors should remain vigilant and watch for any changes in market conditions that could affect the asset’s price trajectory.
As always, it’s essential to conduct your own research and manage risk accordingly when trading or investing in volatile assets like Cardano.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Get the latest Crypto & Blockchain News in your inbox.
Join Now