Cardano’s (ADA) $1.22 Billion Volume May Fuel Rally Toward 2-Year High

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As a seasoned analyst with over two decades of market experience under my belt, I find myself intrigued by Cardano‘s recent surge and its potential to break out from its bearish pattern. Having seen countless bull and bear markets throughout my career, I can confidently say that the current uptick in ADA demand is reminiscent of the early stages of a significant upward trend.

Technical analysis indicates that if buying pressure is maintained, Cardano could reclaim its two-year high. The resurgence in ADA’s trading volume and the positive readings on the Elder-Ray Index and MACD suggest that this bullish outlook may come to fruition soon. However, as with any investment, there are always risks involved, and a failed attempt to breach the $0.92 resistance could potentially erase ADA’s recent gains.

One thing I’ve learned over the years is that the market never ceases to amaze me with its unpredictability. So, while I am optimistic about Cardano’s potential breakout, I always remind myself that the crypto market can be as volatile as a rollercoaster ride at times. As they say, “Don’t put all your eggs in one basket, or watch that basket.”

To lighten things up, let me share a joke that my colleague told me once: Why don’t we ever trust atoms? Because they make up everything and they seem to disappear in the blink of an eye! And that’s exactly what Cardano did, it disappeared from my radar for a while, but now it’s back with a bang! Keep an eye on this one, folks.

The price of Cardano has experienced a significant increase over the last day, jumping approximately 10%. This growth can be attributed to an uptick in trading activity, which has led to a boost in demand for the cryptocurrency. This increased demand is evident in the surge of its trading volume, reaching over $1 billion during this timeframe.

Based on technical analysis, it’s possible that if buying momentum continues, the price of Cardano may rise again to reach its peak of $1.32, which it last saw two years ago. This can be achieved by investors maintaining their buying pressure.

Cardano Nears Breakout from Bearish Pattern

According to BeInCrypto’s analysis, the ADA/USD one-day chart reveals that Cardano has been moving within a falling triangle pattern since December 3, when it reached a two-year peak at $1.32. This bearish structure emerges when an asset repeatedly hits lower highs while holding a flat resistance level. It suggests a buildup of selling pressure as investors are unloading their assets to realize profits.

Over the past 24 hours, I’ve noticed a surge in demand for ADA that has propelled its price to the upper boundary of a descending triangle. This suggests a possible breakthrough above, which could indicate a shift from bearish to bullish sentiment within an ongoing downtrend pattern. If ADA manages to breach this upper line, it would serve as a strong signal of an upturn and reinforce the resilience of the upward trend.

Based on data from the ADA daily chart, it appears that a breakout could happen soon due to increasing buying pressure. This is supported by the Elder-Ray Index, which has shown a positive value for the first time since December 13, reinforcing this optimistic perspective. Currently, the indicator is reading 0.057.

The Elder-Ray Index for an asset gauges the influence of both bulls (buyers) and bears (sellers) in the market. For instance, when it comes to ADA, a positive value implies that the bullish force is prevailing, meaning buyers are in control and pushing prices upwards.

Additionally, at the current moment, ADA’s Moving Average Convergence Divergence (MACD) line (blue) appears ready to move above its signal line (orange). This configuration could indicate an approaching bullish crossover, signifying strengthening upward price movement in the asset. This setup usually implies that buying pressure is growing and is frequently viewed as a prelude to an increase in the asset’s price.

ADA Price Prediction: Will It Break Out or Pull Back?

Currently, ADA is hovering near the top of a downward-sloping triangle formation priced at approximately $0.92. The noticeable increase in purchasing actions indicates that there might be a breakout above this crucial resistance point. If this happens, it could drive Cardano’s price closer to its two-year peak.

If the push above the $0.92 resistance doesn’t succeed, it might signal a continuation of the downtrend, causing a dip in ADA’s price. This could potentially bring the value down to the $0.84 support level, thereby challenging the optimistic view we’ve had recently.

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2025-01-02 11:07