- Cardano (ADA) looks set to break the $1 resistance level as large investors accumulate to the tune of 130 million ADA during the dip.
- An analyst who rightly predicted that ADA would hit $1 before the end of the year hints that $10 could be the next target.
Cardano (ADA) is holding strong at $1 as it surges by 4% on the 24-hour price chart and 28% on the seven-day price chart. Fascinatingly, this bullish momentum is expected to continue as whales aggressively accumulate the asset.
Price Analysis
Analyzing Santiment data, we discovered that whales made a staggering purchase of 130 million ADA during the recent dip. Analyst Ali Martinez believes this is a clear sign of confidence.
According to Martinez, the whale’s acquisition could position the asset on an upward trajectory. Fascinatingly, the recent price growth, according to data, was triggered by the 34% increase in Open Interest, which now stands at $972 million.
Subjecting ADA to technical analysis, we discovered that the asset is currently trending above the 20-day Simple Moving Average (SMA) at $0.756. However, the asset had entered the overbought territory at press time as its Relative Strength Index (RSI) “sat” at 74.66. Interpreting this development, our analysts disclosed that ADA could experience a short-term pullback due to consistent profit-taking at the current level. Meanwhile, the RSI indicator also shows that there could be a continued bullish momentum.
This is confirmed by the MACD line, which currently sits above the signal line, coupled with a positive histogram.
Analyzing Coinglass data, we also found that ADA recorded a net outflow of $2.82 million on November 27. This implies that more tokens were withdrawn from exchanges than deposited. Additionally, this shows that investors are transferring assets to their self-custody wallets, which could potentially reduce selling pressure on exchanges and trigger a price surge.
According to IntoTheBlock’s data, 70% of ADA investors are currently in profit, with only 29% at a loss. Also, 71% of these holders have had the tokens for over a year, indicating that investors are optimistic about the long-term potential.
How Far Can ADA Rise?
According to Ali Martinez, Ada could hit $15 before the end of the cycle. In his submission, the analyst highlighted that ADA has recorded an impressive growth of 200% in the last three weeks. However, this is just the beginning. Throwing more light on its on-chain activities, Martinez pointed out that ADA whales have made over 100% profit in the last month, and this contributed to the over $22 billion large transactions recorded daily on the network.
Martinez also explained that the current activities are an imitation of the previous cycle. Once this continues, the asset could hit $6 in the short term. Meanwhile, the $0.82 price point was marked as the critical support level where over 48,000 addresses purchased around 1.2 billion ADA.
Coincidentally, crypto analyst Dan Gambardello also believes that ADA could hit $10. However, he identified key resistance at $1.05 and support at $0.80. Gambardello’s previous thesis, which was reported by CNF, accurately predicted that ADA would hit $1 before the end of the year. At that time, the asset was trading at $0.33.
Recommended for you:
Credit: Source link
