Cardano’s price is on the verge of a potential breakout, according to crypto analyst Javon Marks, who predicts a significant price increase of over 260%. The current price of ADA has been steadily increasing, showing a 2.97% gain in the last 24 hours. Marks points to an ascending triangle pattern forming on Cardano’s chart, indicating a bullish continuation signal. This pattern suggests that buyers are accumulating ADA at higher prices, with the breakout probability increasing as the price approaches the triangle’s upper resistance line.
Marks believes that once ADA breaks through the upper resistance level, significant upward momentum could be seen, potentially leading to a price range of $2.70 to $2.91, representing a 261% gain. Historical data shows that a similar breakout in the past resulted in a nearly 300% price increase. With the consistent testing of the resistance level, the breakout may be imminent, presenting a favorable entry point for investors.
Adding to the positive outlook for Cardano is the increase in long-term holders or Hodlers, as shown by data from IntoTheBlock. The number of ADA held for over one year has been steadily rising, indicating growing investor confidence in Cardano’s long-term potential. Additionally, the number of medium-term holders, or Cruisers, holding onto their ADA for 1-12 months has also increased, suggesting a shift towards longer-term positions and away from short-term speculative trading.
In addition to the chart pattern and increasing Hodlers, several technical indicators support a positive price outlook for Cardano. The 50-day Simple Moving Average (SMA) is nearing a crossing above the 200-day SMA, known as a Golden Cross, which often signals the start of a strong upward movement. The open interest for Cardano’s derivatives has also seen a significant increase, further supporting the bullish outlook. The Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) are both showing positive signs, with the RSI indicating continued momentum and the CMF reflecting increased buying pressure and demand for ADA.
Overall, the combination of the chart pattern, increasing long-term holders, and positive technical indicators points towards a potential breakout for Cardano’s price. With the possibility of a significant price increase in the near future, investors may see this as a favorable entry point to consider adding ADA to their portfolio. As always, it is important to conduct thorough research and consider market conditions before making any investment decisions in the cryptocurrency space.
