Cardano (ADA) $1.1 The price is showing strong signals as it is consolidating at the $1.10 level, heralding a potential upside. Cryptocurrency analyst Ali Charts detected a bullish pennant formation on ADA’s price chart and stated that this could indicate an upward movement in the near future.
Technical Analysis Predictions
The bullish pennant pattern observed on Cardano’s price chart is a technical pattern that generally predicts the continuation of an uptrend. This pattern is characterized by a sharp price increase followed by a period of consolidation that takes on a triangle shape.
Pennant’s resistance level is around $1.11, while its support level is located near $1.10. If ADA breaks above the upper trend line, the price could target a rally to $1.40. Ali Charts stated, “Cardano’s rise to $3 could be quick and smooth.” This ADA price prediction is also in line with Coingape’s previous analysis, which predicted a similar price explosion following the completion of the Elliott W.
Increased Network Activity Strengthens Investor Confidence
Aside from technical signals, an increase in Cardano’s network activity may also support price movements. According to DeFiLlama data, the Total Key Value (TVL) on the Cardano blockchain has increased to $595 million, an increase of 33% since the beginning of the year.
The increase in TVL indicates that interest in Cardano’s decentralized finance (DeFi) ecosystem is increasing and attracting both individual and institutional investors. Transaction volumes also reached 10.64 million dollars, indicating increased activity on the chain.
Additionally, the number of wallets funded on the Cardano network is also increasing significantly. More than 10,000 new wallets have been added since December 19, bringing the total to 4.38 million. An influx of new investors is an indicator that market sentiment is positive.
ADA Price Resistance Levels and Targets
Cardano price prediction must overcome certain resistance levels while maintaining bullish momentum. The immediate resistance level determined by the Donchian Channels is around $1.20.
A break above this level could pave the way for a move towards the $1.34 target, which corresponds to the 1.618 Fibonacci extension.
ADA continues its buying pressure by breaking through the current consolidation period and could potentially rise to $7. However, in case of a fall below the $1.20 level, $1.00 is considered a critical support level. Breaking this support level raises the possibility of Cardano experiencing further declines and testing $0.92.
Technical indicators also support this view. The Relative Strength Index (RSI) is at 67, reflecting strong buying activity but approaching the overbought zone. On the other hand, the MACD (Moving Average Convergence Discount) remains in the bullish zone, indicating continued upward pressure.
For investors, Cardano’s current price movements and technical analysis provide important indicators that should be monitored carefully in order to evaluate potential future profit opportunities. Additionally, the increase in network activity increases interest and investor confidence in Cardano’s ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
