Cardano’s Impressive Run and Potential Threats
Cardano (ADA) has recently gained the attention of crypto investors as its price surpassed $0.3. This significant level has been difficult to reach, but the bulls have managed to achieve it. However, as the market faces an impending downturn, Cardano’s upward momentum may be at risk. Despite this, one crypto analyst suggests that ADA could follow a similar path to Solana in the past few days.
Analyst’s Expectations for Cardano
In a recent post on TradingView, crypto analyst Alan Santana shared their predictions for Cardano’s price. Using the coin’s daily performance, Santana identified bullish consolidation in the previous week, which contributed to the rising prices. Eventually, ADA broke out and successfully surpassed the $0.3 resistance level. However, compared to Solana’s 80% surge, ADA’s achievement is relatively small.
The Role of Consolidation and Momentum
Santana noted that ADA did not retrace as expected during the bullish consolidation phase. Instead, it continued its upward momentum. This consolidation period allowed Cardano to gather strength and momentum, potentially leading to a price increase.
ADA’s On-Chain Activity and Price Surge
ADA whale and address activity experienced a rapid increase of 32% in the last three weeks, reaching a new three-month high. Additionally, Cardano’s price rose by 36% within a two-week period, making it one of the top-performing cryptocurrencies during this time. If this on-chain activity trend continues, it could further drive up the price in the upcoming weeks.
Potential Profit-Taking and Temporary Setbacks
Considering the significant price increase, some profit-taking is expected, leading to a temporary dip in the price. However, as long as demand remains high, this setback will likely be temporary.
Hot Take: Cardano’s Promising Future
Cardano’s recent surge above $0.3 has caught the attention of investors. Despite potential threats from an impending market downturn, the coin’s upward momentum remains strong. With bullish consolidation and increasing on-chain activity, Cardano has the potential to follow in the footsteps of Solana’s impressive run. Although temporary setbacks may occur due to profit-taking, as long as demand remains high, Cardano’s future looks promising.
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