Is Cardano (ADA) On the Verge of Skyrocketing to $1?
Cardano (ADA) has seen a remarkable 144% increase over the past 15 days, currently trading at $0.793. The cryptocurrency is facing a significant resistance zone around the $0.80 level, which, if breached, could pave the way for a rally towards $1. Notably, recent whale activity has surged, indicating that large stakeholders may be positioning themselves for further upside.
Market Sentiment and Whale Activity Pointing Bullish
The prevailing sentiment around Cardano is bullish, with price action reflecting a clear upward trend. Recent data from IntoTheBlock highlights a marked increase in whale activity, with investors controlling over $10 million in ADA boosting their holdings by 134.09%. Similarly, smaller investors (those holding between $100,000 and $9 million) have also increased their positions during this period, which signals growing confidence in Cardano’s potential.
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Furthermore, analytics from Santiment reveal that Cardano’s social media presence has surged, ranking second in social trends as of November 16. The spike in social dominance has reached levels not seen since the brief bull run in March, indicating that ADA-related discussions are gaining traction. This shift in social sentiment, coupled with a predominance of positive over negative discourse, could foreshadow a price increase.
Technical Outlook: Resistance and Retracements
Examining the ADA price chart reveals the asset’s struggle to breach the critical resistance level around $0.80. Previously, ADA peaked at $0.8193 but was met with selling pressure as profit-taking occurred.
Should ADA manage to close above the $0.80 to $0.82 resistance zone, the path to $1 appears relatively unobstructed. Utilizing the Fibonacci retracement tool suggests that subsequent targets post-breakout could be $0.89 and $0.9871, corresponding to the 0.27 and 0.618 Fib extension levels.
Conversely, this current price level is pivotal for bears; if ADA fails to surpass the existing resistance, a retracement could drive the price down to approximately $0.71, aligning with the 0.382 Fib retracement level. Below this, ADA could find support around $0.6478, which may serve as a pivotal bounce point for a potential upward return.
Any sustained drop below this support level may invalidate the bullish outlook, putting ADA at risk of entering a consolidation phase between $0.54 and $0.64.
Conclusion: Can ADA Hit $1?
Given the upswing in whale activity and the robust social dominance, Cardano appears poised for a potential breakout. Insights from Coinglass’s liquidation map reveal that derivative traders maintain a bullish stance on ADA, with three times the number of long positions compared to shorts on major exchanges like Binance, OKX, and Bybit. These elements suggest that, despite an impressive 144% rally in just two weeks, the momentum for Cardano may still have further room to run.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
