- ADA surged amid accumulation, breaking resistance after prolonged consolidation.
- Whales drove rally; $1 remains critical psychological and technical barrier.
Cardano (ADA) has recently captured the attention of the cryptocurrency market with a notable price surge. It reached a 16-day high of $1.03, reflecting an 8% gain in the past 24 hours. The trading volume climbed by 5% within the same period, signaling renewed market interest. Over the past week, ADA has risen by 17%, supported by a daily Relative Strength Index (RSI) of 57, which remains in neutral territory.
Moreover, this rally follows a prolonged two-week period of price consolidation. Analysts attribute the recent uptrend to a bullish breakout from a key resistance trendline that ADA has struggled with since early December 2024. The altcoin witnessed a significant 42% price correction during this bearish phase.
Despite these setbacks, long-term holders and whales have accumulated ADA at discounted levels, as indicated by an on-chain analysis. Exchanges recorded an outflow of $37.18 million worth of ADA over the past week, underscoring heightened accumulation during consolidation.
ADA To Breakout or Breakdown?
The breakout has positioned ADA for potential upside momentum, with technical analysts predicting a possible climb to $1.26, provided the altcoin closes above the $0.98 mark. ADA’s RSI at 52.65 indicates sufficient room for further upward movement.
However, ADA’s journey to sustained gains faces challenges. The $1 mark remains a critical psychological barrier, with three failed attempts in December highlighting resistance due to limited retail capital. A short squeeze, which recently liquidated $107 million in shorts market-wide, has fueled ADA’s recent spike. Yet, breaking and holding $1 as support is essential for sustained momentum.
Cardano’s future performance hinges on market dynamics and Bitcoin’s stability. With large holders pulling substantial ADA from exchanges, the coming days will determine whether this rally marks a lasting breakout or a fleeting speculative uptick. Investors are closely watching for it to flip $1 into solid support, a decisive factor for its long-term trajectory.
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