Will Cardano Price Hit $10 as Analyst Predict a Cup and Handle Rally?

Key Insights:

• Cardano formed a Cup and Handle pattern, with analysts predicting a breakout above $3.23, potentially reaching $9.33.
• Whales accumulated 180 million ADA in a week, increasing their holdings to 6 billion, signaling strong investor confidence.
• Cardano network activity surged, with active addresses up 11.99% and new addresses rising

Cardano price has experienced significant price movements, fluctuating between $0.70 and $0.74 in the past 24 hours. ADA gained 1.7% in the last hour and 1.8% over the past day. Despite a 21.6% weekly decline, the token has recorded an 8.1% gain over the last 14 days.

Cardano Price Forms Cup and Handle Pattern

Crypto traders have identified the Cup and Handle pattern in Cardano price movements. This may, therefore, signal a possibility of a breakout about key resistant levels. The Cup develops when the price decreases, retraces, and increases while The Handle refers to a brief dip before the price rises sharply.

According to CryptoELITES, Cardano’s crucial breakout resistance stands at $3.23. A breakout above this level could push the price toward $6.45, based on Fibonacci extensions. If bullish momentum continues, ADA price may reach $9.33, following the 1.414 Fibonacci extension level.

Whales Accumulate 180 Million ADA

Additionally, onchain data reveals that these Cardano whales purchased 180 million ADA tokens in the last one week. This boosted the overall staking amount to 6 billion for wallets holding between 1 million to 10 million ADA. The whale accumulation usually indicates increased investor interest and possible price rise.

Ali Martinez, a crypto analyst, noted that large investors are strategically increasing their holdings. If this bearish pressure is to persist, buying pressure could fuel the price stability which in turn will cause a rally. Both institutional and retail investors watch these oscillations to determine market trends.

Cardano Price Network Activity Surges

Cardano network activity has seen a significant increase, suggesting higher engagement. The number of active addresses has increased to 11.99%, proving an increase in user engagement on the blockchain. Furthermore, there has been an increase in new wallet addresses by 4.79% in the last one week.

Furthermore, zero-balance addresses have also risen  by 12.26% signifying that there are new investors coming into the market. Historically, increase in network activity has been also observed to have a positive relationship with price trends. These trends demonstrate the increasing bullish pressure in the Cardano market.

Technical Indicators Suggest Strong Momentum

Moreover, analyst Dan Gambardello identified a parabolic trend in Cardano price movements. An upward curved dotted line in a chart suggests an indication of trends that may lead to the $10 price level. The price recently approached and bounced off an important moving average which supports a bullish trend.

The Relative Strength Index (RSI) currently is at between a high of 50 and 60 showing the buying pressure. A higher level of RSI indicates an overbought condition for ADA, indicating strong market strength. If RSI maintains its upward trajectory, ADA price could see further gains.

Cardano Price Targets and Potential Rally

However, if the Cardano price is to break out, it has to cut through the $3.23 resistance level. If successful, the next major target of $6.45 corresponds with the Fibonacci levels. Analysts suggest that continued whale accumulation and rising network activity support this bullish scenario.

The breakdown of these levels could open the way to rally towards $9.33. Some analysts see a potential to return to $10 in case of further positive drivers on the market. Traders and investors remain focused on the Cardano price charts for further signals.

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.