An analyst has made an interesting observation about Cardano’s trading pattern, suggesting that ADA could reach $1.5 in the near future following a 38% surge in the past month.
There has been a significant increase in ADA ownership among the top 1% of whales, indicating a growing interest in the project’s future.
Cardano has experienced a gain of almost 40% in the past month, riding the positive wave of the broader market. It has reached its highest price in two years, just below $0.80. This has generated excitement among investors, with analysts now predicting that ADA will surpass $1 in the short term. Bulls have accumulated millions of ADA over the past week.
Currently, Cardano is trading at $0.7443 and has shown little movement in the past 24 hours. Trading volume has decreased as the market cools down after recent frantic movements.
Though the token has only gained 4.4% in the past week, it experienced a surge at the end of February, rising from $0.5753 on Feb. 26 to $0.7947 on Mar. 4, a 38% increase in just one week. Despite a slowdown in momentum, the token has maintained a price above $0.7 since reaching new highs nearly two weeks ago.
Analysts are confident that ADA will reach $1, and some, like Dan Gambardello, the founder of Crypto Capital Venture, even project it will hit $1.5. Gambardello shared a chart on X, showing his 254,000 followers the trading pattern that ADA has been following, leading to a breakout towards $1.5.
Another analyst, known as Trend Rider on X, compared Cardano’s market movements to the 2021 bull rally, where the token went from $0.2 in January to $3 in September, reaching its all-time high. The analyst referred to a ‘parabolic red line’ that indicates an imminent price surge once it crosses the token’s price. This phenomenon also occurred in Bitcoin months ago before it reached a new all-time high above $73,000.
Whale accumulation of ADA is viewed as a positive signal, as it shows that those holding significant amounts of the token are confident in its future. CoinMetrics data reveals that the top 100 addresses have been accumulating ADA tokens since the beginning of the month. Additionally, the top 1% of Cardano addresses have been stacking up tokens in recent days, indicating their expectations of an uptick in the coming weeks.
Having surpassed the $0.75 resistance earlier this month, Cardano’s next resistance level is at $0.98. The last time it broke this resistance was in 2021 before setting a new record. Analysts have observed that the token’s Bollinger bands are showing similar expansion to their 2021 trend, which occurred just before ADA surpassed the $0.98 resistance.
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