Cardano price bounced back on Tuesday, a day after it formed a morning star pattern as the crypto crash intensified. This rebound also happened after Cardano overtook Bitcoin in a key ranking. So, will this be the start of a major ADA bull run that could push it to the psychological point of $1.5?
Cardano Price Rises As It Overtakes Bitcoin On A Key Ranking
A report by Brand Intimacy has ranked Cardano the number one crypto brand globally. It has flipped popular coins like Bitcoin, Solana, Ethereum, and Ripple. Its report also ranks Cardano as the 26th corporate brand globally, making it more popular than popular firms like Walmart, Toyota, AMD, Ubisoft, and Home Depot.
The report based its data on key areas like indulgence, fulfillment, ritual, identity, enhancement, and nostalgia. It then uses big data and artificial intelligence to identify a quotient figure, in which case is 52.6 compared to Bitcoin’s 51.9.
Still, Bitcoin remains a better-known brand in the crypto industry with a market cap of almost $2 trillion compared to Cardano’s $34 billion. Also, DeFi Llama says Bitcoin has over 730,000 active addresses compared to Cardano’s 31,000. Bitcoin also has a total value locked of $6.52 billion compared to Cardano’s $500 million.
Looking ahead, Cardano has numerous catalysts that will push its price higher in the long term. As a popular crypto brand, the Securities and Exchange Commission (SEC) is likely to approve a spot ADA ETF as soon as this year.
Further, Cardano’s Midnight zero knowledge scaling feature will be launched this year. Also, Cardano will integrate with BitcoinOS, unlocking over $1 trillion in liquidity.
ADA Price Technical Analysis: Can It Hit $1.5?
Technicals suggest that the value of ADA has more upside after Monday’s drop. It formed a small morning star candlestick pattern, which closely resembles a hammer. This pattern comprises a long lower shadow, a small body, and a small upper shadow and is a popular reversal sign.
Cardano has also formed an inverse head and shoulders pattern whose head is at $0.7600. Like the morning star, an inverse H&S pattern is a popular bullish sign in the market.
ADA also formed a break and retest pattern by falling to $0.8082, its March 2024 high briefly. Therefore, the coin may continue rising in the next few weeks. The two resistance levels it needs to flip to get to $1.15 are $1.1500 and $1.3268, its highest swings on January 7 and December 3.
The bullish ADA price forecast will become invalid if it drops below the right shoulder at $0.8800. If that happens, it will risk it dropping to the next key support at $0.7600.
Frequently Asked Questions (FAQs)
One study shows that Cardano has flipped Bitcoin in terms of brand awareness. However, Bitcoin is still a bigger brand that ADA in terms of multiple metrics like market cap and number of active addresses.
Yes, there are odds that the ADA price will bounce back to $1.5 in this crypto bull run. This will happen if the coin flips last year’s high of $1.3268.
Cardano has formed an inverse head and shoulders pattern, remains above the 50-day moving average, and a morning star pattern.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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