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Cardano (ADA) Breakout Signals: Brace for 32% Rally Ahead

2 mins
Updated by Bary Rahma
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In Brief

  • Cardano price is close to breaking out of a falling wedge pattern targeting a 32% rise.
  • Whales have once again begun accumulating, adding $30 million worth of ADA in ten days.
  • Price DAA divergence is noting a sell signal, which usually happens owing to profit taking.
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Cardano price is looking at a potential breakout, which could propel the altcoin toward new year-to-date highs.

However, ADA is also vulnerable to a decline, which could be triggered if the profit-taking sentiment intensifies.

Cardano Whales Noting a Bullish Comeback

Whales’ move largely impacts Cardano’s price, be it buying or selling. This was evident in how ADA moved over the past few weeks as the whales opted to offload their holdings.

However, this changed in the previous ten days when addresses holding between 1 million and 10 million ADA accumulated nearly 50 million ADA worth $30.3 million. This pushed their total holdings to 5.79 billion ADA.

This is a bullish signal which translates to an increase in Cardano price.

Cardano Whale Accumulation.
Cardano Whale Accumulation. Source: Santiment

Secondly, the price daily average addresses (DAA) divergence is presently observing a sell signal. The price-DAA divergence compares an asset’s price movement with the number of active addresses daily. A divergence occurs when there’s a significant difference between the two metrics, suggesting potential changes in price momentum, investor sentiment, or network adoption.

Read More: How To Buy Cardano (ADA) and Everything You Need To Know

In the case of Cardano, the price is rising, and DAA is dropping, a sell signal is being flashed, which, while it seems bearish, is inherently bullish since it suggests a short-term price rise is likely.

Cardano Price DAA Divergence.
Cardano Price DAA Divergence. Source: Santiment

ADA Price Prediction: Expect a Massive Rally

Cardano price, at the moment, is charting candlesticks moving in a falling wedge pattern, generally known to be a bullish reversal pattern, as rallies tend to take place following a breakout.

Based on this pattern and the fact that ADA is close to breaking out, Cardano’s price will likely post a 32.91% rise. This would bring the third-generation cryptocurrency to $0.813.

Read more: Cardano (ADA) Price Prediction 2024/2025/2030

ADA/USDT 1-day chart.
ADA/USDT 1-day chart. Source: TradingView

However, if the sentiment of selling, as noted on the price DAA divergence, intensifies, a drawdown could occur. Consequently, Cardano’s price would invalidate the falling wedge pattern and bullish outlook, sending ADA to $0.500.

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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 ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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