Following a recent upward trend, Cardano (ADA) hit a low of $0.8 after December, leading to a 34% recovery in the past fortnight. Interestingly, this price level coincided with the peak in March 2024, suggesting a strong support level for potential future gains.
Peter Brandt, a well-known trader and analyst, expressed optimism about ADA’s future, hinting at the possibility of a major bullish momentum after reaching the March high.
“Alt season???? Make no doubt about it, Cardano $ADAUSD has bottomed for a grand bull market”
Consolidation above a previous peak often signals a bullish uptrend, with the potential for a substantial surge in prices.
If ADA follows a pattern resembling a bull flag, the target price could reach $1.9, nearing the $2 mark, representing a potential 72% increase.
Could Large Investors Boost ADA’s Value?
Recent data shows that two major whale wallets, holding between 100 million to 1 billion ADA (yellow) and 1 million to 10 million ADA (red), have been accumulating assets over the past week, amassing a total of around 9.4 billion ADA.
Conversely, another group of whales holding between 10 million to 100 million ADA (blue line) owns the largest share, with approximately 11.94 billion ADA, and has been selling off during the same period.
The price movements appear to align with the actions of the 100 million to 1 billion ADA (yellow) whales, suggesting that their increased accumulation could potentially drive ADA’s price higher.
While the recent price surge touched the $1.12 supply zone, it might prompt swing traders to take profits. In such a scenario, ADA could experience a temporary dip to $1 or the trendline resistance before attempting to breach the supply zone.
A breakout above the resistance level could propel ADA to $1.4, potentially reaching the $1.5 target. This assessment is based on the bullish breakout from the ascending triangle pattern, indicating a target price of $1.4.
Market sentiment on Binance shows that a majority of traders are bullish on ADA, with long positions rising from 66% to 77% over the last two days, underscoring strong positive sentiment towards the altcoin.