|

Cardano price could rise 30% as crypto markets take to a revival course

  • Cardano price action has consolidated into a descending triangle, but a reversal seems likely.
  • ADA could make a 30% climb if it manages a break and close above $0.5410.
  • A break and close below $0.4668 would invalidate the bullish thesis. 

Cardano (ADA) price continues to consolidate below a descending trendline, a bearish technical formation that extended the choppy altcoin market. However, this outlook appears to be changing as cryptocurrency markets take to what appears to be a revival course. 

Also Read: Cardano price could rise 15% as shark and whale wallets resurface

Cardano could bottom out around now

Cardano (ADA) price downtrend has lasted since mid-December, falling around 30%. The price may have bottomed out as the altcoin confronts the blockade represented by the downtrend line. Increased buying pressure could see ADA price overcome the trendline to confront the resistance confluence between the 50-day Simple Moving Average (SMA) and the horizontal line at $0.5419.  

Key levels to watch beyond this level include the $0.5908 roadblock, 10% above current levels, or  higher at $0.6412. In a highly bullish case, the gains could see the Cardano price complete the 30% climb to $0.6800.  

ADA/USDT 1-day chart

On-chain metrics to support bullish outlook for Cardano 

Based on Santiment's social dominance and social volume metrics, the number of mentions for the ADA token is increasing relative to a pool of other tokens within crypto-relatd social media. These add credence to the bullish thesis.

ADA Santiment: Social volume, social dominance

Also, the spike seen in the volume metric, combined with that in the number of whale transactions involving movements of more than $100,000 worth of ADA shows traders have grown active, which could bode well for ADA price. 

ADA Santiment: Whale transaction count, volume

On the other hand, a rejection from the descending trendline could see ADA price continue below the foothold of the trendline, potentially testing the $0.4668 bottom, nearly 10% below current levels. 

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

More from Lockridge Okoth
Share:

Editor's Picks

XRP slides amid a fragile crypto market structure
Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.
Bitcoin Price Forecast: BTC pressured amid ETF outflows, fresh US-Iran risks
Bitcoin (BTC) remains under pressure, trading below $78,200 at the time of writing on Thursday after declining nearly 3% so far this week. Weakening institutional demand, along with escalating geopolitical tensions between the US and Iran near the Strait of Hormuz, continues to dampen risk appetite and weigh on the Crypto King. Institutional demand for Bitcoin shows early signs of caution.
Top Altcoins Price Forecast: Ripple, Solana, and Cardano risk deeper losses
Ripple (XRP), Solana (SOL), and Cardano (ADA) struggle to extend last month's advance, pointing to moderating buying pressure. The technical outlook for XRP, SOL, and ADA suggests a mild near-term bearish bias as momentum weakens. Ripple trades around $1.3800 at press time on Thursday, extending losses after a bearish close the previous day.
Crypto Today: Bitcoin, Ethereum and XRP lose bullish momentum as structural support holds
Cryptocurrency prices are moderating on Thursday, with Bitcoin (BTC) dropping to test the near-term $78,000 support. Altcoins, including Ethereum (ETH) and Ripple (XRP), are echoing Bitcoin’s cautious sentiment, with ETH retracing to approximately $2,470 and XRP to $1.38.
Bitcoin: Gearing up for a sharp move
Bitcoin (BTC) is trading around $81,000 on Friday, up over 4% so far this week, and awaits a key catalyst that could determine its next directional move. Strong institutional demand is supporting the bullish price action, with spot BTC Exchange Traded Funds (ETFs) on track to record a third straight week of inflows.