Following the formation of a double bottom, a chart pattern frequently indicating a bullish reversal, Cardano's price appears to be gaining momentum. This technical setup is coupled with increased whale activity, hinting at a potential surge in ADA's price in the near future.
On Wednesday, the price of Cardano hit an intraday peak of $0.715, its highest level since March 28. This surge of over 40% from its recent low comes amid a broader rebound in both stock and crypto markets. According to CoinMarketCap, the overall sentiment is bullish at 89% for ADA.
On the macroeconomic front, the easing of geopolitical tensions and Donald Trump’s more nuanced remarks towards Jerome Powell, the Chairman of the Federal Reserve, have reassured investors. As a result, Wall Street rose, with the Dow Jones, the Nasdaq 100, and the S&P 500 up by 1.5%, 2%, and 3%, respectively. In the cryptocurrency market, Bitcoin has surpassed the key $94,000 resistance for the first time in over a month.
This rise in Cardano’s price coincides with increased activity among whales, these investors holding large volumes. According to Santiment data, wallets holding between 10 and 100 million ADA tokens now represent 36% of the total supply, up from 33.4% in January.
This sustained accumulation is leading to an improved bullish sentiment on ADA. Currently, nearly 24.5 billion Cardano tokens are held in profitable wallets, compared to 19.5 billion at the beginning of the month. This phenomenon could encourage more investors to take positions in ADA, considered one of the safe haven assets of Web3.
Since its recent low at $0.512 on April 7, Cardano has shown a strong recovery momentum. This level also corresponds to the lowest swing low recorded on February 13, thus creating a double bottom, a recognized bullish reversal pattern. The “neckline” of this pattern is at $1.173, a medium-term target.
Among other favorable technical signals, ADA has crossed above its 50-day exponential moving average and broken above the upper limit of a descending wedge pattern, a classic reversal pattern. The price has also exceeded the 61.8% Fibonacci retracement level, while the Relative Strength Index (RSI) is strongly trending upwards.
These indicators point towards a bullish projection, with the initial target being the psychological resistance level of the US dollar ($1), approximately 43% above the current level. In the meantime, ADA will have to face the 100 and 200-day Moving Averages at around 76 cents and a strong liquidity zone up to 80 cents.
Thanks to the rigorous and academic approach of the project developed under the guidance of Charles Hoskinson, Cardano boasts a robust technical framework, ideal for attracting DeFi, NFT, and digital identity projects.
This technical legitimacy combined with strong activity from institutional investors could make ADA an indispensable strategic digital asset in the market.
In conclusion, Cardano appears to be gaining favour in the market. If this momentum continues, particularly by surpassing the symbolic threshold of $1, a scenario of continued bullish trend towards $1.17 or even higher in 2025 cannot be ruled out.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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