As Cardano makes a comeback in the game after being called a ghostchain, the demand continues to grow. With bulls aiming to catapult ADA price to a new height from $1, should you be joining the Cardano rally?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
With the BTC price BTC $83 153 24h volatility: 1.3% Market cap: $1.67 T Vol. 24h: $19.37 B hanging around $104,000, altcoins like Ethereum ETH $1 878 24h volatility: 2.9% Market cap: $230.40 B Vol. 24h: $9.36 B and Cardano ADA $0.70 24h volatility: 6.0% Market cap: $25.39 B Vol. 24h: $736.32 M are making a bullish comeback. With Ethereum gaining strength, the ETH to BTC chart has surged to 0.0319 BTC.
This accounts for a price surge of 6.2% over the past two days. Among the rising altcoins, Cardano is at a significant crossroads.
In the daily price chart, the ADA price trend reveals three consecutive bullish candles, ready to form a triple-soldier pattern. This hints at a potential double-bottom reversal from the $0.90 mark.
Currently, the ADA token trades at a market value of $0.97827, with an intraday rise of 1.82%. As the Cardano price recovers, the MACD and signal lines are on the verge of giving a positive crossover.
Furthermore, based on the trend-based Fibonacci levels, the uptrend is likely to challenge the immediate resistance level of 23.6%. This crucial resistance is priced at $1.054, hinting at Cardano reclaiming the $1.00 psychological mark.
Along with the momentum indicator, the dynamic average lines signify underlying strength. The recovery in Cardano has surpassed the 50-day EMA line and is likely to avoid a negative crossover with the 20-day EMA line.
Hence, the technical indicators maintain a positive outlook for Cardano.
Adding to the upside potential in Cardano, Ali Martinez, an independent analyst, highlights a crucial price pattern. In his recent X post, Ali highlights Cardano performing a bullish positive cycle within a symmetrical triangle pattern.
#Cardano $ADA is consolidating within a symmetrical triangle, setting up for a breakout that could trigger a 40% price move! pic.twitter.com/7HAgD8UhXs
— Ali (@ali_charts) January 31, 2025
The recovery in Cardano aims to challenge the triangle’s resistance trendline. A potential breakout will propel Cardano price to a new high. Based on this 4-hour ADA price chart analysis, Ali suggests a potential price surge of 40%.
As the Cardano price action hints at a potential parabolic rise, the speculation in the derivative market is on the rise. The Cardano open interest has risen by 0.51%, crossing the $1.2B mark.
Currently, the open interest stands at $1.22B, while the long-to-short ratio over the past 24 hours remains at 0.9512. Despite the greater number of bearish positions in play, the ratio highlights a significant recovery over the past few days.
However, the funding rate also takes a hit. Currently, it is down to 0.033% compared to the recent peak of 0.0101%. Hence, with the rising number of bearish positions, the ongoing bulls are likely facing a lack of confidence to hold their long setup.
In conclusion, with strong technical indicators, rising open interest, and a potential symmetrical triangle breakout, Cardano is primed for a bullish surge. A successful breakout could push ADA past $1.05 and toward a 40% rally to $1.40.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
