Analyst: 2 reasons why the Cardano price will rise

Cardano (ADA) has been in positive territory again since the beginning of the year. After a period of relative calm, some analysts are now seeing signals that point to a possible new phase for the cryptocurrency. According to a recent analysis, there are two factors specifically that could drive the coming price movement.

Cardano remains within an ascending channel

According to an extensive analysis by analyst Risk_adj_return, the ADA price is still moving within a rising channel, provided you zoom out sufficiently to early 2023. At that time, Cardano was still trading at around $0.21, at a low point. The price is now around $0.40, after an increase of 21 percent since the turn of the year.

The analyst points to an important ‘accumulation zone’ between $0.34 and $0.37. He expects buying pressure in this area as several technical indicators point to a potential reversal. Despite earlier declines since the peak of $1.17 early last year, he said the long-term trend remains upward.

A second reason for optimism is the so-called ‘liquidity pockets’ above the current price. These are zones where there are many orders, often around psychological levels. Major players regularly steer prices towards these areas to raise liquidity.

According to the analyst, there are several such zones above the current price. The first is between $0.50 and $0.55, followed by a cluster around $0.60 to $0.65.

The expected profit targets according to the analyst:

• $0.44 – first resistance level
• $0.50 – $0.55 – liquidity zone
• $0.60 – $0.65 – former sales zone
• $0.73 – $0.78 – maximum price target

However, the scenario expires if ADA falls below $0.245. That would indicate structural weakness and possible continuation of the decline.

Final bottom before explosive rise for ADA?

According to analyst Vuori Trading, Cardano can still experience a significant increase. He does, however, add a comment. The coin appears to have formed a bottom around $0.33 at the turn of the year, but according to him, many crypto coins often make a double bottom before a real uptrend begins.

This means that ADA may fall back one more time before the real increase starts. If that happens, Vuori expects fireworks again. His price targets are between $5 and $14 for this cycle.

The latter in particular is extreme and should be taken with a grain of salt. This would amount to an increase of more than 4,100 percent compared to the current price.