TLDR:
- ADA price extended gains to $0.69, rallying nearly 9% in a day
- Whale wallets are accumulating ADA tokens according to Santiment data
- Long-to-short ratio at 1.06, highest in over a month, showing bullish sentiment
- Positive funding rates indicate more traders betting on price increases
- Analysts project potential 10x growth, with price targets up to $7
Cardano’s ADA token is showing strong momentum, trading at around $0.69 after rallying nearly 9% in a single day. This price movement comes amid increased whale accumulation and growing bullish sentiment in the market, suggesting a potential continuation of the upward trend.
On-chain data from Santiment reveals that whale wallets holding between 100,000 to 100 million ADA tokens have been actively buying during the recent price dip.
Specifically, whales holding between 100,000 to 1 million ADA increased their holdings from 5.69 billion to 5.89 billion tokens between April 14 and today.
Those holding 1 million to 10 million ADA grew their positions from 5.65 billion to 5.73 billion tokens during the same period.
The largest whales, holding between 10 million to 100 million ADA, boosted their holdings from 12.67 billion to 12.87 billion tokens.
This accumulation pattern demonstrates strong confidence in Cardano’s future prospects and has helped fuel the recent price surge.
Technical Indicators Point Upward
Technical analysis further supports the bullish outlook. Cardano found support around the 78.60% Fibonacci retracement level at $0.50 on April 7, leading to a 21% rally over the following two weeks.
The token is now trading above the 61.8% Fibonacci retracement level at $0.67, showing strength in its recovery.
The Relative Strength Index (RSI) reads 57 and is pointing upward above its neutral level of 50, indicating growing bullish momentum.
If ADA maintains this momentum and breaks above the 200-day Exponential Moving Average (EMA) at $0.71, it could extend its rally to retest the weekly resistance level at $0.74.
Many traders have their eyes on the psychologically important $0.80 level as the next major target.
The Moving Average Convergence Divergence (MACD) is also turning positive, providing a classic buy signal that suggests fresh bullish momentum is building.
Market Sentiment Strongly Positive
Market sentiment indicators are flashing strong buy signals. Coinglass data shows ADA’s long-to-short ratio at 1.06, the highest level in over a month.
This ratio being above one reflects growing optimism as more traders are betting on price increases rather than declines.
The OI-Weighted Funding Rate for ADA turned positive on Monday and currently stands at 0.0096%, the highest level since February 22.
This metric indicates that long positions are paying shorts, a scenario that typically signals bullish sentiment in the market.
These positive funding rates suggest that traders are increasingly convinced that Cardano’s price will continue its upward trajectory in the coming days and weeks.
Institutional Interest and Ecosystem Growth
Beyond short-term price movements, Cardano’s ecosystem continues to expand, attracting institutional interest that may support long-term growth.
Recent reports highlight the platform’s growing smart contract ecosystem and partnerships with governments and NGOs, such as its collaboration with the Ethiopian government.
The introduction of the Lace Wallet, a multi-chain solution with a built-in DApp store and staking reward automation, enhances user experience and accessibility.
The Cardano Community is currently organizing an important meeting to discuss how treasury funds should be used to boost liquidity for native stablecoins.
This discussion will bring together stablecoin issuers and governance action authors to explore opportunities and risks related to the treasury’s role in supporting Cardano’s DeFi ecosystem.
Long-term Price Predictions
Looking ahead, several analysts have shared optimistic price predictions for ADA. Crypto analyst Jad Mubaslat projects a 1,000% surge to $7, based on historical price cycles.
Analyst Ali Martinez notes that ADA is breaking out of a Triangle pattern, potentially leading to a 27% price move in the near term.
Another analyst, Kris Does Crypto, predicts a price of $5.33, citing ADA’s technological advancements and increasing adoption rates.
While the price had dropped 17% in the week prior as dormant wallet activity increased, the recent reversal and strong technical indicators suggest this was merely a temporary setback.
As of the latest data, Cardano is trading at approximately $0.6994, reflecting a 12.17% increase in the last day and 14.55% gain over the past week.
The technical outlook remains positive, but investors should note that a daily candlestick close below Monday’s low of $0.61 would invalidate the bullish thesis and potentially cause Cardano’s price to retest support at $0.50.
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