Cardano (ADA) Price Prediction: Is A Bounce Toward $1 Imminent?

• ADA price dragged more than 14% in a week, trading at $0.9035.
• Analysts predict support at $0.68, with deeper corrections possible toward $0.49.

Cardano’s (ADA) price recently failed to breach the $1.30 resistance mark. Furthermore, the token encountered a significant decline. Following the $1.30 hurdle rejection, the Cardano price slipped more than 15% in a week.

It has retested the 50-day EMA support mark and sought a bounceback. Despite a 15% drop over the past seven days, its bullish chart structure remains intact.

The ADA price traded at $0.9021 at press time, noting a rise of over 1.20% in the past 24 hours. Its market cap soared to $31.48 Billion, ranking 9th among the top crypto coins.

Analyst Predictions and Market Sentiment

Crypto Analyst Ali Martinez pointed out that the current Cardano price action resembled its 2020 bull cycle behavior. He added that the first significant correction happened after the bull run in 2020. It is at the same spot in the cycle where the current correction occurred.

He believes that the ADA price could reach $6 soon. That would accomplish a 560% increase from the current price.

Also, it formed a double bottom pattern on a weekly timeframe. This often signaled a shift toward the $1 mark. In case of a bounce back toward the $1 mark, the Cardano price could continue the upward movement. Furthermore, the token may cross $1.50 in the coming days.

On-Chain Signals Signals Mixed Cues

Data from IntotheBlock signaled that ADA’s daily active addresses noted a drop of over 40% in the past seven days. That represented decreasing user activity.

Also, the large transaction activity was noted to drop by over 32% in a week, dropping to 12.9K. This conveyed that large holders did not look confident in accumulating ADA at these levels.

However, the Global In/Out of the Money (GIOM) indicator signaled that ADA has strong resistance at $1.37. 565,730 addresses have accumulated 3.15 billion tokens.

A massive rally can be seen if it is close to the $1.37 mark. Notably, around 2.68 million in-the-money addresses were currently making profits. At the same time, over 35% of holders were sitting at unrealized losses.

Cardano Price Prediction: Key Levels to Watch Out

During the daily timeframe, the Cardano price has witnessed profit booking in the last two weeks and has remained under the bear’s control. However, the technical indicators suggested that the asset may be due for a short-term rebound.

The Relative Strength Index (RSI) line had a reading of 43. It signaled a lack of buying pressure, which led to a significant drop. However, the Average Directional Index (ADX) line was still close to 30. This indicated that the upward remains intact, and a bounce can be seen in the coming days.

Going forward, the OI-weighted funding rate remained positive at 0.0109%. It resembles the demand for long contracts. The immediate support zones for the ADA price were $0.8800 and $0.8650. On the other hand, the resistance levels were $0.9600 and $1.10.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.