Cardano Analysis: 3 Signs ADA Could Break Out to $0.48

The Cardano price has been fluctuating within a narrow range since the beginning of the month. This cryptocurrency has faced resistance at the $0.36 level and has found support at the $0.33 price level.

However, things are about to change. With high demand for ADA, this cryptocurrency is poised to break through this resistance level and expand its uptrend. But how soon could this happen?

Cardano traders start accumulating

Cardano is currently trading at $0.35, above its Ichimoku cloud. The Ichimoku cloud is an important indicator used to assess market trends, momentum, and support and resistance levels. When the price of an asset is above the Ichimoku cloud, it indicates an uptrend. In this case, the cloud acts as a dynamic support, suggesting that buyers are in control.

Furthermore, Cardano's Balance of Power (BoP) index confirms the increase in buying activity in the market. This indicator, which measures the strength of buyers versus sellers in the market, is at 0.44 at the time of writing. A positive BoP indicates that buyers are in control and are trying to push the asset's price higher.

Notably, Cardano whales have increased their trading activity, as evidenced by the surge in the net flow of large holders, which has increased by over 1000% in the past 7 days.

Large holders refer to addresses holding more than 0.1% of the circulating supply of an asset. When their net flow surges, it indicates that whales are accumulating the asset, which is a strong bullish signal. This could spark increased interest from retail investors, leading to further accumulation and potentially driving the asset's price higher.

ADA Price Prediction: Potential to Reach ATH in 4 Months

If the buying momentum accelerates, the Cardano price will break above the $0.36 resistance level. A successful breakout of this level could pave the way for a price increase to $0.48, the last price seen in June.

However, if buying pressure wanes and selling activity increases, the Cardano price could retreat to the $0.33 support level. If buyers fail to defend this level, the price could decline, potentially reaching $0.30.

Join the BeInCrypto Community on Telegram to stay updated on the latest analyses and news about the financial markets in general and cryptocurrencies in particular.