Cardano’s price could reach $0.40 as the token has seen a surge in buying pressure over the past week, reflecting growing investor confidence. It also hints at a potential breakout for ADA, which has struggled to maintain an uptrend for a long period.
In this analysis, BeInCrypto examines the implication of the accumulation and factors that could hinder the prediction.
Cardano Investors Inject New $49 Million, Traders Follow
On September 16, Cardano addresses holding between 100 million and 10 billion tokens had a combined total of 2.88 billion ADA. As of today, that number has risen to 3.02 billion, meaning these large addresses have accumulated around 140 million ADA, valued at $49 million, over the past week.
When these key stakeholders buy more tokens, it typically drives Cardano’s price upward. Historically, however, when whales sell, the price tends to drop.
In this case, buying pressure has pushed ADA’s price up by 5%. The key question now is whether this upward trend will continue or if a reversal could follow as large holders reconsider their positions.
Read more: 9 Best Blockchain Protocols To Know in 2024
According to the Exchange-Onchain Market Depth, which tracks buying and selling on the top 20 exchanges, these addresses are not the only ones interested in buying ADA.
As shown below, market participants have placed buy orders for 180 million tokens at $0.35, totaling $63 million at the current price. Conversely, sellers are looking to offload 134 million ADA, valued at nearly $47 million.
Since the buy volume exceeds the potential selling pressure, Cardano’s price may resist a significant downturn. Instead, the cryptocurrency could aim to trade at a higher value.
ADA Price Prediction: 16% Surge Possible
An analysis of Cardano’s daily chart reveals an inverse head-and-shoulders pattern, often indicating a potential reversal from a downtrend. This pattern forms when the price makes a new low (left shoulder), followed by another drop (head), and then a higher low (right shoulder).
For this bullish outlook to hold, ADA needs to break above the neckline, which it is currently testing at $0.36. If the price retests the 61.8% Fibonacci level, a 16% rally could follow, potentially pushing ADA to $0.40.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
However, traders should stay cautious. If ADA fails to break above $0.36, a 9% correction could bring the price down to $0.32.
Trusted
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
