Cardano's surge: Evaluating the possibility of ADA hitting its $0.77 goal
Cardano Soaring Beyond $0.68, Heads Toward $0.77 Next
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Cardano (ADA) has smashed through a triangle pattern, blasting past the $0.65 resistance and zooming towards the next key resistance at $0.77.
The crypto market has witnessed a period of sideways action, with ADA hugging both ascending and descending trendlines. At the moment, ADA is trading at $0.696, marking a 0.43% increase in the past 24 hours.
The breakout has crucial implications, lining up with the 1.618 Fibonacci extension level at $0.684, which has now flipped into support. The immediate resistance sits at $0.711, with the psychological and technical hurdle of $0.77 standing just beyond.
A peek into the Fibonacci confluence near $0.77, particularly at the 2.618 extension zone, offers a potential short-term price target. If the bullish momentum continues, traders may strive to reclaim this level in the upcoming sessions.
Retail Frenzy or Whale Cautiousness?
A closer look at transaction count by size reveals that smaller transactions are driving the current trend. Transfers below $1 have skyrocketed by 250%, indicating a dramatic surge in retail activity.
Meanwhile, large transactions exceeding $100k have dropped significantly, with declines ranging from 60% to nearly 87%, depending on bracket size. This dichotomy suggests the current rally is primarily fueled by smaller retail participants, while whales and high-net-worth investors remain cautious.
Balanced Scene on the Spot Market
Inflows totaled $26.26 million, while outflows amounted to $26.36 million, indicating a slight net withdrawal. This marginal outflow is often seen during early breakout stages, where traders lock in short-term gains without fully exiting positions, suggesting that participants are On edge yet tentative.
Bullish Outlook from Derivatives Sentiment
Derivatives data aligns with the technical breakout narrative, with the OI-Weighted Funding Rate standing at 0.0096%, indicating that traders are paying to hold long positions. This indicates a shift towards positive sentiment among leveraged participants, with renewed conviction.
What's Next for ADA?
Cardano's structure looks bullish after its breakout from the consolidation period. Bullish sentiment is growing, and spot activity remains cautiously optimistic. Whilst whales remain inactive, sustained momentum above $0.684 could shift market sentiment.
If ADA continues along its current trajectory, the $0.77 target remains highly attainable in the short term. Some analysts project even higher targets, with potential long-term Fibonacci-driven targets reaching as high as $3.80–$5.60 later in 2025 if bullish volume persists. Other analysts like Javon Marks suggest a $2.70–$2.91 target in the future. We'll have to wait and see if ADA manages to climb to these heights!
[1] https://www.youtube.com/watch?v=fUxeYPCf_CA (Jacob Canfield)[2] https://www.reddit.com/r/cardano/comments/txvlabc/cardano_current_price_prediction/ (Reddit user ZzInnerchild)[3] https://twitter.com/JavonMarks/status/1514393776454829056 (Javon Marks)[4] https://coindoo.com/cardano-price-prediction-2022/ (CoinDo)[5] https://www.bestcoin24.com/cardano-ada-price-prediction-march-2022/ (BestCoin24)
- The current momentum of Cardano (ADA) seems to be driven by a surge in retail activity, with small transactions exceeding larger ones by 250%.
- Despite the breakout, whales and high-net-worth investors appear to be cautious, with a significant decrease in large transactions exceeding $100k.
- The spot market shows a slightly net withdrawal, indicating traders are locking in short-term gains while remaining tentative.
- Derivatives data suggests a shift towards positive sentiment among leveraged participants, with traders paying to hold long positions.
- If Cardano continues its current trajectory, it appears that the short-term target of $0.77 could be reached, and analysts project even higher targets in the future, up to $3.80–$5.60 by 2025.
- On the 23rd technology, Cardano soared beyond $0.68, heading towards the next key resistance at $0.77, showing a bullish trendline in its structure.
