 is poised for a significant move. The ADA price has been consolidating within the daily chart's narrowed symmetrical triangle pattern.){kind=link}
- ADA’s OI-weighted funding rates are now indicating a shift toward market optimism.
- The breakout is mainly contingent on trading volume and buying momentum.
- Cardano’s founder, Charles Hoskinson, is set to speak at the Cardano Summit on October 18th. With that, investors eagerly anticipate any announcements influencing ADA’s price.
Cardano (ADA) is poised for a significant move. The ADA price has been consolidating within the daily chart’s narrowed symmetrical triangle pattern. This technical setup indicates that a substantial price action could occur soon in either direction.
Yesterday, ADA price dropped by 3.66% during the market session. However, it has since rebounded, trading 1.22% higher at $0.347.
This slight increase suggested a sideways trend. It has been in place since June 2024. It remains intact, with the price hovering near the lower boundary of the pattern.
Traders eagerly anticipate a breakout above the resistance level, driven by community sentiment. Many speculate that a new recovery could push the ADA price out of its consolidation phase.
Why On-Chain Data Highlights Uncertainty In ADA Crypto?
On-chain data revealed a mixed outlook for ADA crypto‘s market position, highlighting some uncertainty. Cardano’s network currently lacks significant bullish momentum, with a large holder concentration at 29%. This indicated that some significant investors were offloading their holdings.
However, while some have sold, others have been accumulating. According to Certik Skynet’s data, the number of holders has increased from 582K last month to 584K. That suggested ongoing accumulation.
Cardano maintains a strong presence on X, with its account being 7 years and 8 months old and boasting 1.37 million followers. The account has posted 7,443 tweets, with 7 new posts in the last 24 hours.
This underscored its established role in the crypto community. The project also has a solid security score of 89.06 and an AA-tier security class rating.
Since falling from its yearly highs, the ADA price has traded within a range for the past four months. This appears to be a healthy accumulation phase. Financial data showed that 74.66% of holders are at a loss, 19.81% are in profit, and 5.53% are at breakeven.
Additionally, transactions exceeding $100K have totaled $24.51 Billion in the past seven days, indicating increased whale activity. This surge in large transactions could potentially drive ADA’s price higher if it breaks out of its current trading range.
Despite the rise in large transactions, uncertainty remains due to the concentration of holdings. Only 8.97% of holders are whales. On the other hand, the remaining 91.03% are retail investors with smaller holdings than whales.
This uncertainty might diminish if more investors accumulate large amounts and become whales. It could lead to a significant price rally.
An Imminent Move Is Near Due to Symmetrical Triangle Formation
The daily chart shows that ADA prices have traded sideways for the past four months. It formed a symmetrical triangle pattern.
This pattern typically indicated a period of consolidation between two converging trendlines. It has set the stage for a significant breakout. Traders are closely watching to see if this breakout will be upward or downward.
The ADA price gradually approached the triangle’s upper boundary, suggesting a breakout was imminent. The 200-day exponential moving average aligns with this upper trendline, creating a high supply zone.
A breakout above this trendline would signal the end of the prolonged consolidation phase. That could trigger a rally.
#Cardano is about to break out of this 1D Symmetrical Triangle! If #ADA breaks to the upside, the target is $0,54 pic.twitter.com/sFKlcgQxZ3
— The Moon (@TheMoonCarl) October 16, 2024
ADA will need substantial buying pressure supported by high trading volume to break above the upper trendline. Furthermore, it has to rise beyond the resistance block. This would confirm the bullish scenario and potentially lead to further price increases.
ADA Crypto’s Derivative Market Walkthrough
According to Coinglass, ADA crypto‘s OI-weighted funding rates have shifted from negative 0.0044% to a positive 0.0100%. This indicated growing market optimism.
In the last 24 hours, derivatives volume has surged by 5%, reaching a total traded value of $278.17 Million. This uptick highlighted the rising demand for ADA in the derivatives market. ADA’s open interest has also climbed to $237.90 Million, a 17.09% increase from the previous session.
Could Charles Hoskinson’s Speech Boost ADA’s Performance?
Founder Charles Hoskinson is scheduled to speak at the upcoming Cardano Summit on October 18th.
Investors will watch for any announcements or updates impacting the ADA price. His speech is likely to influence market sentiment significantly.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Dr. Naveen Singh is an entrepreneur with achievements in sports, academics, healthcare, innovation, blockchain technology, telecommunications, and philanthropy. He is the Co-Founder and Chief Executive Officer (CEO) of Inery, the first layer-1 blockchain programmed for database management. With Inery, he aligns with his vision of a new paradigm for data to empower web3 and complete decentralization.