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?
With the BTC price BTC $94 918 24h volatility: 0.0% Market cap: $1.88 T Vol. 24h: $22.79 B hanging around $104,000, altcoins like Ethereum ETH $1 806 24h volatility: 1.5% Market cap: $218.02 B Vol. 24h: $11.93 B and Cardano ADA $0.70 24h volatility: 2.3% Market cap: $25.12 B Vol. 24h: $702.82 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.
Cardano (ADA) Price Nears $1: Buyers Aims Breakout Rally
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.
Analyst Finds 40% Breakout Rally Potential
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%.
Declining Funding Rates Warns Bullish Weakness
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.
next