Cardano (ADA) is nearing a breakout rally, with its upside potential extending toward the $1 psychological mark.
As the crypto market stands at $2.84 trillion, altcoins are gradually gaining momentum. Cardano, the ninth most prominent crypto in the market, has recorded a surge of 1.28% over the past 24 hours.
Currently, the ADA token trades at a market price of $0.7592, marking its fourth consecutive bullish candle. Will this recovery lead to a price jump to the $1 psychological level?
Cardano Price Exceeds 200-Day EMA Line
On the daily chart, the ADA price trend indicates a bullish reversal, crossing above the 200-day EMA line. Along with overcoming dynamic resistance, the recovery run has surpassed the 61.80% Fibonacci level at $0.735.
Based on our previous analysis, the recovery is preparing for a potential bullish rally toward the $0.9216 mark. This crucial price target aligns with the 78.60% Fibonacci level.
Supporting the upside potential, the MACD and signal lines have given a positive crossover, suggesting an increase in underlying bullishness. Currently, the recovery is challenging the 50 and 100-day EMA lines.
Whales Load Up 240 Million ADA in 7 Days
Amid increasing chances of a bullish rally and growing momentum, the demand for Cardano is rising among crypto whales. Ali Martinez, a crypto analyst, highlights that whales have acquired 240 million ADA tokens over the past week.
According to data from Santiment, whale holdings have reached 3.27 billion ADA tokens. As crypto whales continue to accumulate more Cardano tokens, the market price is likely to see a bullish surge.
Bullish Sentiments Soar for Cardano
Amid the increasing anticipation of a recovery run, Cardano derivatives show a massive surge in open interest. The OI has jumped 8.68% to reach $855.11 billion.
This highlights a significant rise in trade interest for Cardano. Furthermore, the long-to-short ratio over the past 24 hours has moved above the neutral level, indicating a gradual increase in the number of bullish players.
As the number of bullish contracts rises, the funding rate has recently flipped into a positive trajectory, currently standing at 0.0008%. With this new bullish cycle in the funding rate, the sentiment for Cardano is growing stronger in the derivatives market.
Cardano Derivatives
ADA Price Targets
Based on Fibonacci levels, the upcoming price target for Cardano is the 78.60% level at $0.9216, indicating an upside potential of nearly 20%.
Additionally, with broader market recovery, Cardano could see further extension, potentially reaching the $1 psychological mark. On the downside, the 200 DMA line, close to the 68.80% level at $0.7351, will serve as a key support level.
