Cardano Price Forecast: ADA bull run to $2 regains traction as whales step in


  • Cardano price is up more than 50% in the past three days after rolling out a new network update.
  • ADA’s uptrend shows no sign of stopping, but there is a critical resistance barrier ahead.
  • On-chain data suggest the presence of whales behind the current price action, supporting a further advance.

The impressive rally Cardano price has enjoyed comes after a significant update to its blockchain. The Goguen ‘Mary’ update allows users to create custom on-chain tokens that are ‘native’ to the network, making ADA a multi-asset blockchain.

The so-called “Ethereum killer” has been on fire throughout 2020. Cardano price first saw a 600% increase in its market value between March and July 2020. Then the token rose by another 130% as the year ended.

In 2021 alone, ADA’s market value has increased by a whopping 300%. With the team of engineers at IOHK rolling out more protocol updates, the price is seeing a positive reaction and shows no signs of slowing down.

Cardano price rally to face harsh resistance

ADA has seen a 50% increase in its market value in the last three days. On the one-week chart, Cardano price shows the formation of an inverse head and shoulders pattern, suggesting further gains in the horizon. 

This technical pattern hints at a 900% target obtained by measuring the distance from the head to neckline. 

Cardano price has already seen a 230% increase since it broke out in early January. But it is far from being done as the inverse head and shoulders forecasts it will rise to $2.00.

ADA/USD 1-week chart

ADA/USD 1-week chart

Based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, there is one resistance barrier ahead of Cardano price that may absorb some of the buying pressure seen recently. 

At $0.75, roughly 3.85 million ADA were purchased by nearly 800 addresses. Given the important numbers of holders that have been “Out of the Money” around this price level, they may try to break even, putting a stop to Cardano’s uptrend. 

Cardano IOMAP chart

Cardano IOMAP chart

Regardless of the significant supply barrier ahead, whales’ activity on the network adds fuel to the optimistic outlook.

The number of large transactions with a value of $100,000 or greater has seen a 424% increase since late January. As more value is transferred within Cardano’s blockchain, higher fees are paid, which tends to affect ADA’s market value positively. 

Cardano Large Transaction chart

Cardano Large Transaction chart

It is worth mentioning that a failure to overcome the $0.75 resistance level could spell disaster for ADA. Indeed, the rejection might result in a downswing pushing it to the next immediate support at $0.60.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Prediction: BTC set to retest $56,000

Bitcoin price is heading lower following a break below a critical support trend line. The leading cryptocurrency is now exposed to a downside target of $56,568. The BTC IOMAP model suggests that the bellwether cryptocurrency is unlikely to drop below $56,000.

More Bitcoin news

Chainlink price faces minor sell-off before resuming uptrend

Chainlink price is witnessing its uptrend retreat following a technical signal that indicates the token has reached its local top. LINK is headed lower to retest critical support levels as the bears target $28.61 next. The token may fall toward the lower boundary of ...

More ChainLink news

SafeMoon price prepares to escape from prevailing downtrend with 60% ascent

SafeMoon has been locked in a downtrend since May 23, with little ambition to reverse the period of sluggish performance. While it's trapped in the prevailing consolidation chart pattern, an escape above $0.00000288 could spell trouble for the bears.

More SafeMoon news

XRP price on the cusp of massive decline if this critical support level fails to hold

XRP price is trapped within a recent downtrend as the momentum has flipped to the downside. Ripple lagged behind while other cryptocurrencies, including Bitcoin and Ethereum, recently witnessed rallies reaching new all-time highs. 

More Ripple news

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP