The ‘Ethereum killer’ Cardano (ADA) is drawing interest from analysts and investors alike as bullish technicals take shape. After trading below $0.50 for the last year, the cryptocurrency has recently pumped above $0.70. With it recently up 3% in the past 24 hours, accumulation certainly seems to be ongoing. Perhaps the most fundamental question at hand is whether Cardano can quickly regain the elusive $2 level, propelled by these bullish patterns.
We’ve recently pointed out that Bitcoin’s formation of a large ascending triangle pattern has eventually led the price to a breakout within the target range of $2.70 and $2.91. The 50-day Simple Moving Average (SMA) is nearing a bullish crossover above the 200-day SMA. This development is a strong bullish sign as it forms a Golden Cross, possibly marking the start of a lengthy bullish trend for Cardano.
Technical Indicators Point to Upside
Cardano Analyst Justin Wu discovered the breakout best seen on daily time frame. This pattern is indicative of a price target in the range of $2.70 to $2.91 should the breakout be confirmed. Wu has pointed out two short-term price targets for Cardano, located at $1.2456 and $1.4642. These levels come from the crypto’s technical chart’s well-known resistance and support base.
The 50-day SMA close to a cross above the 200-day SMA is a very important signal. When this crossover happens, it’s known as a Golden Cross. Most traders view this as an extremely potent bullish indicator, suggesting that the emerging cryptocurrency could be on the verge of entering a new phase of steady price appreciation.
As pointed out by crypto analyst Javon Marks, Cardano has been printing an ascending triangle on the daily chart. Historically, this same scenario has led to a 300% increase for Cardano, spurring hope in investors.
Holder Behavior Reflects Confidence
A growing wave of Cardano holders is showing a long-term belief in the asset. Additionally, a massive 1.81% increase has been showcased on holders holding ADA for over a year according to provided data. This is indicative of a powerful belief in the cryptocurrency’s long-term potential.
Medium-term holders, sometimes known as “Cruisers,” have been more convicted as well, growing their ranks by 7.65%. This jump indicates a developing faith among investors holding ADA for the medium term.
An increase in long-term and medium-term holders is an indicator of a confident, bullish sentiment, which is manifesting itself in the Cardano community. This unexpected positivity may extend the mystery cryptocurrency’s upward momentum.
Market Sentiment and Future Outlook
The juxtaposition of favorable technical indicators coupled with growing holder sentiment confidence presents an optimistic outlook for ADA. In other words, Cardano may be at the cusp of a major surge. The pattern breakout from the ascending triangle formation and the soon to come Golden Cross signal a very strong bullish momentum just ahead.
Analysts' targets of $2.70 to $2.91, if realized, would represent a substantial increase from Cardano's current price. It is worth reminding that the cryptocurrency market is highly volatile, and such targets are by no means assured.
Consequently, investors should continue to watch Cardano’s price action closely, looking at key resistance levels and confirmations of a potential breakout. Bullish as the current outlook may seem, risk management and due diligence will be more important than ever to ongoing success in the cryptocurrency space.
