- Cardano (ADA) price is showing bullish momentum as its price holds above the Ichimoku Cloud, signaling strong market support.
- The Balance of Power (BoP) at 0.44 and a surge in whale activity further confirm the dominance of buyers, boosting investor optimism for a potential rally.
Cardano (ADA) price is currently experiencing a positive trend around the $0.35 level and positioned above the Ichimoku Cloud. For those who don’t know, it is a well-known indicator for analyzing trends, momentum, and key support or resistance levels.
The price remaining above this cloud signals a bullish market sentiment, where the cloud functions as a major support zone. Hence, this suggests that buyers have taken control of the market, fueling optimism among investors for ADA price.
Cardano Price Poised For Rally
In addition to the Ichimoku Cloud, the Cardano price’s Balance of Power (BoP) further supports the ongoing bullish trend. The BoP is an indicator that compares the strength of buying pressure versus selling pressure in the market. Currently, Cardano’s BoP stands at 0.44, indicating that buyers are dominating the market in an effort to push the ADA price upward. As reported by CNF, ADA currently has 10x strength in comparison to the previous cycle.
Another factor contributing to the positive outlook is the notable surge in activity from large holders or “whales.” In the past seven days, large holders’ netflow has increased by over 1000%. These large holders are addresses holding more than 0.1% of Cardano’s circulating supply.
A spike in netflow from these key players typically indicates that whales are accumulating the asset. This is deemed as a significant bullish signal that often precedes further price increases. Increased whale activity can also capture the attention of retail investors, leading to more buying activity and potentially driving the price even higher.
ADA Technical Analysis
From a technical perspective, the Cardano price is approaching a critical resistance level at $0.36. If the current buying momentum continues, there is a strong possibility that the price will break through this resistance. This could potentially trigger a rally toward the $0.48 target. This price level was last observed in June, making it a significant target for bullish traders. Some Cardano pundits also expect the ADA price to surge to $1 before the year-end, per the CNF report.
Moreover, a breakout above $0.36 would confirm a continuation of the bullish trend and could attract additional market participants. However, the bullish outlook comes with caution. If the buying pressure diminishes and selling activity picks up, ADA price may fall back to its key support level at $0.33.
In the event that this support level fails to hold, the price could drop further, potentially declining to $0.30. Thus, traders should monitor the market closely, especially if there are signs of weakening buying momentum.
Currently, ADA price is trading at $0.3554, gaining 0.81% on Monday, October 14. According to Coinglass data, long liquidations reached $341,800 in the past 24 hours of volatility in ADA price. This could further weigh on the altcoin’s price trajectory in the short term, which could trigger a dip despite maintaining resilience lately.
