The entire altcoin market seems to come to life. The enthusiasm was introduced by Ethereum (ETH) and XRP, which showed considerable increases in recent weeks. Cardano (Ada) is moving in the momentum. Although we now see a correction, the psychological resistance of 1 dollar is getting closer. And according to several analysts we can expect an outbreak soon.
Repetition of the past
Analyst Dan Gambardello, founder of Crypto Capital Venture, points to strong technical signals on the ADA chart. For example, the digital currency shows a classic pattern of an outbreak after a long consolidation period. The course breaks important resistance levels, such as the so-called 50 and 200 ‘day Moving Averages’. This means that Cardano on the short -term performs better than its long -term trends.
Gambardello compares the current situation with earlier consolidation phases followed by explosive rises. Even then, similar technical signals were visible, after which the price rose with hundreds of percent. The analyst expects resistance between 1.15 and $ 1.30, but if the momentum persists, a course of 2 dollars is even a realistic goal. Compared to the current price, that would amount to an increase of 143 percent.
Analyst CW is also optimistic. He indicates that we can rise to the price level of $ 1.20. Here, however, we can expect a strong resistance, which is comparable to Gambardello his analysis. CW speaks of a possible “sales wall”. In March, January and December, for example, we saw that the token also had difficulty breaking this level convincingly.
Despite the promising technical signals, Ada is still acting far below its all-time high. In 2021 the token reached its highest price, with a course of 3.09 dollars. Cardano currently trades 71.7 percent below this value.
Altcoin season?
For Ada To be able to rise further, it is important that the entire market remains positive. In the Bullruns of 2017 and 2021 we saw that the digital currency reached its record heights when the altseason was completely erupted.
To hold on to this momentum, it is essential that Bitcoin (BTC) continues to perform stable or even increases in value. This creates space and trust among investors to shift capital to altcoins such as Cardano.
As the largest Altcoin, Ethereum (ETH) is an important indicator for the rest of the market. In recent weeks, ETH has performed much better than BTC, and that has also contaminated the other altcoins with enormous profits. Cardano has risen by more than 70 percent this month. Today the currency has to deal with a considerable loss of 10 percent.
Source: https://newsbit.nl/cardano-nadert-1-analisten-hebben-vertrouwen-in-mega-stijging/
