- Summary:
- Cardano price faces headwinds in the USD 1-1.20 range. However, it signals latent bullish potential with an uptick in whale activity.
Cardano price traded downwards on Monday, extending its accumulation within the $1.00-$1.20 range. ADA was down by 0.5% and traded at $1.073 at the time of writing, with its returns in the last week at -8.7%. The subsidence is partly attributed to Bitcoin’s upsurge, which has ironically exerted downward pressure on altcoins.
BTC has historically been the cryptocurrency market bellwether, but its current resurgence has taken the limelight away from altcoins, amid talk of a strategic Federal Bitcoin reserve. The continued resistance of ADA prices at the $1.20 mark signals an underlying weakness, with crypto asset trading below its Volume Weighted Moving Average (VWMA) of $1.13.
Why Cardano price is primed for a breakout
Cardano price’s correlation with Bitcoin stands at 0.66 as of this writing, adding credence to the current market bias toward Bitcoin, to the detriment of altcoins. However, the prolonged consolidation of ADA price has incentivised whale investors, who have increased their purchases significantly in the last seven days.
According to IntoTheBlock, the number of transactions valued at $100k or more rose from 1,386 to 1,480 in the last seven days. With the total whale transaction value at $22.67 billion, versus a total market cap of $38 billion, a spike in large transactions signals rising investor interest in Cardano.
Also, Open Interest data shows that the value of ADA’s perpetual contracts rose by 3.56% in the last 24 hours to $696.9 million. In addition, Futures contracts went up by $4.35%. These affirm the rising demand for ADA, which could help fuel a return to the upside. A break above the $1.20 resistance mark could potentially set the next target at the psychological $1.50 mark.
Cardano price prediction
Pivot: Cardano price pivots at $1.094. The sellers are in control as signaled by the Money Flow Index (MFI). The downward momentum will prevail if resistance persists at that level. Otherwise, the momentum could shift toward the upside.
Support: The first support will likely be at $1.070. However, a stronger downward momentum will break below it and could establish a second support at $1.055.
Resistance: A move above the pivot could send the price higher to the first resistance at $1.113. Breaking above that level will invalidate the downside narrative. Also, extended control by the sellers could send ADAUSD higher to test $1.130
