Cardano [ADA] was one of the fortunate cryptocurrencies that saw positive movement on both its daily and weekly charts.
However, this could just mark the start of a significant upward trend, with potential for ADA to kickstart a rally towards $1 in the near future.
Cardano Aiming for $1
Recent data from CoinmarketCap showed that ADA’s price rose by more than 1.5% last week. Bulls maintained control over bears in the previous 24 hours, resulting in a slight increase in ADA’s price.
As of the time of writing, the token was trading at $0.3407, boasting a market capitalization exceeding $12.2 billion, positioning it as the 11th largest cryptocurrency.
While bullish momentum prevailed, a well-known crypto analyst, World Of Charts, recently shared a tweet highlighting a bullish pattern on Cardano’s price chart.
The bullish falling wedge pattern emerged in December of last year, with ADA consolidating within this pattern since then.
After more than six months, ADA started displaying signs of a potential breakout from the pattern, hinting at a probable major rally that could propel ADA towards $1 in the upcoming quarter.
Exploring Other Price Targets
While a bullish breakout pointed towards an ascent to $1, CryptoCrypto aimed to first evaluate Cardano’s ability to surpass the resistance levels.
Analysis of Santiment’s data by CryptoCrypto revealed an improvement in ADA’s MVRV ratio, with an increase in whale concentration.
According to IntoTheBlock’s data, the whale concentration percentage surged from 4% in February 2023 to 9% by September 2024.
Despite these positive indicators, other metrics displayed bearish signals. For example, ADA’s Open Interest declined alongside a notable rise in the NVT ratio, suggesting an overvaluation of Cardano and indicating a potential price correction.
The Weighted Sentiment also dropped, reflecting an increase in bearish market sentiment. Additionally, at the time of writing, ADA’s fear and greed index indicated a state of “greed.”
When this metric reaches such levels, it typically signifies a heightened risk of a price correction.
Hence, a thorough examination of ADA’s daily chart was conducted. The technical indicator exhibited a bullish crossover, with the Money Flow Index (MFI) showing an uptick, suggesting a potential breakout above the bullish pattern.
If this scenario unfolds, ADA could initially target $0.45 in the following days, with a potential subsequent climb to $0.54. Moving further upwards, a key milestone before reaching $1 might be at $0.77.
Despite these positive projections, the Chaikin Money Flow indicated a bearish trend by moving sideways close to the neutral point. In the event of bearish control resuming, ADA could retrace back to $0.3.