Cardano (ADA) has seen a 5% increase in price over the past 24 hours. This reflects the general cryptocurrency market’s positive trajectory since the US Federal Reserve cut interest rates on Wednesday.
This surge is also fueled partly by the actions of ADA short-term holders, who appear to be holding onto their coins. Over the past 30 days, their reluctance to sell has positioned the altcoin to potentially break through the resistance level at $0.47.
Cardano Short-Term Holders Remain Resolute
According to IntoTheBlock, the number of ADA short-term holders who have held the coins for less than 30 days has increased over the past month. Often referred to as “paper hands,” these holders tend to sell their coins at the slightest sign of trouble.
However, they have adopted a more bullish approach over the past month. Their decision to refrain from selling reflects a gradual shift in market sentiment toward ADA.
Read more: How To Stake Cardano (ADA)
ADA’s attempt to rally above its Ichimoku Cloud on a one-day chart supports this outlook. As of this writing, the altcoin is poised to breach the Leading Span A of its Ichimoku Cloud indicator, which tracks its price trends, support and resistance levels, and potential market reversal points.
The Leading Span A has served as a resistance level where Cardano’s price has encountered significant selling pressure over the past few months. A successful breach of this level would confirm that bullish momentum is strengthening in the ADA market, signal increased buying interest, and hint at the potential for a further uptrend.
ADA Price Prediction: $0.47 Is Likely Only If This Happens
Cardano’s Relative Strength Index (RSI) is climbing, signaling increasing demand for the altcoin. Currently at 51.52, the RSI shows that buying pressure is building.
If ADA breaks through Leading Span A, it could rally toward Leading Span B, a stronger resistance level. Successfully surpassing this would position Cardano for a potential 31% gain, targeting a price of $0.47.
Read more: 6 Best Cardano (ADA) Wallets You Should Consider in September 2024
However, if demand slows and ADA fails to break Leading Span A, its price could drop to around $0.27.
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