- Cardano (ADA) is experiencing a surge in price, fueled by whale accumulation and positive market sentiment, with bulls targeting the $0.80 level.
- Technical indicators and on-chain data support the bullish outlook, although a close below $0.61 could reverse the recent gains.
Cardano (ADA) has been gaining momentum recently, with the price extending its upward trend after a nearly 9% rally on the previous day. The altcoin has found support from both whale accumulation and positive market sentiment, fueling expectations of further price appreciation. At the time of writing, Cardano is trading around $0.69, and both technical indicators and on-chain data suggest the price could rise toward the $0.80 mark in the near future.
Whale Accumulation and Bullish Sentiment
A significant factor driving ADA’s recent rise is whale accumulation, as indicated by Santiment’s Supply Distribution metric. The data reveals that whale wallets holding between 100,000 to 1 million, 1 million to 10 million, and 10 million to 100 million ADA tokens have increased their holdings since April 14. This suggests that large investors are taking advantage of ADA’s recent dip to accumulate tokens at a discounted price, bolstering investor confidence in the asset.
The bullish outlook is further supported by Coinglass’s ADA long-to-short ratio, which currently stands at 1.06, the highest level in over a month. This positive ratio signifies that more traders are betting on ADA’s price to rise, reflecting growing optimism in the market.
Additionally, Coinglass’s OI-Weighted Funding Rate, which measures the sentiment of futures contract traders, is also projecting a positive trend for Cardano. This metric flipped to a positive rate on Monday and now stands at 0.0096%, the highest level since February 22, further indicating bullish sentiment.
Technical Outlook: ADA Targets $0.80
From a technical perspective, ADA’s recent rally has been supported by key Fibonacci retracement levels. Cardano found support around the 78.60% Fibonacci retracement level at $0.50 on April 7, leading to a 21% surge in the following weeks. As of now, ADA is trading above the 61.8% Fibonacci retracement at $0.67, with eyes set on the $0.80 mark.
If ADA continues its upward momentum and breaks above the 200-day Exponential Moving Average (EMA) at $0.71, it could reach the weekly resistance level at $0.74, pushing toward the psychologically significant $0.80 level. The Relative Strength Index (RSI) currently reads 57, signaling bullish momentum as it rises above the neutral level of 50.
The Risk Factor
While the bullish outlook remains intact, traders should remain cautious. A daily candlestick close below Monday’s low of $0.61 would invalidate the current bullish thesis. In such a scenario, ADA’s price could retreat to the next support level at $0.50, reversing the recent gains.
As whale accumulation continues and technical indicators point to further gains, ADA’s price could continue to rise, with $0.80 acting as a key target for bullish traders.
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