Cardano Price Targets $2 Rally Amid Whale Activity, Whats Next?

Finance

Cardano Price Targets $2 Rally Amid Whale Activity, Whats Next？

Cardano (ADA) price has surged recently. The cryptocurrency is trading in line with the overall market recovery.

ADA price has presented bullish momentum indicating further growth of the asset. Analysts are focusing on the $1.20 level as a key resistance that could open the way for the asset to rise to $2.

Bull Pennant Pattern Signals Potential Breakout

From technical analysis, Cardano is developing a bullish pennant pattern. This is a pattern showing that the price is likely to continue surging.

The pattern develops when an asset price rises and forms two trending lines which constitute the convergence channels.

Source: X

At the moment, ADA is still holding critical support levels at $1 and $1.0870, proving that the upward movement remains intact.

The price trading within this range is suggestive of strong buyers interest and opens up potential for a breakout.

If the price breaks above the $1.20 level, this pattern will be confirmed, and Cardano price may be on its way to the $2 mark.

The analyst also highlighted the ascending channel pattern on the 24-hour chart, which supports the upside trend.

The MACD indicator is also showing some bullish crossover as the signal line is above the histogram.

Similarly, the RSI has come across the overbought level of 70 which indicates that buyers are still active in the market.

Whale Transactions Drive Market Interest

More so, the increase in whale transactions, especially those above $100,000 has been instrumental in the rise of Cardano price.

Market interest in the crypto continues to grow as indicated by large holder activity from the blockchain analytics platform Santiment.

Source: Santiment

These large transactions happened when the price of ADA was also increasing. This implies that institutional investors and high net worth investors are purchasing ADA.

Whale activity is usually associated with high trading volumes and a high level of confidence in the market thus backing the bullish sentiment.

In addition, accumulation by large holders has also contributed to the price remaining above certain crucial support levels.

This trend indicates that there are still signs of strong buying pressure in the market which may be key to driving the price of Cardano to its next major target.

Key Levels to Watch for ADAs Next Move

However, the near-term trend of Cardano will depend on the possible breakout of the $1.20 barrier.

A successful breakout could pave the way for a test of the $1.3 level and make the $2 target ever more likely if the bullish momentum continues.

Conversely, the $1.0870 support level is still intact. If bearish pressure appears, this level can serve as support and prevent the further decline.

More selling pressure may lead to a further decline of the price to $0.9, which will nullify the current bullish trend.

At press time, Cardano price is trading at $1.12, up by 7% in the last 24 hours. The price shows strong bullish momentum, supported by increased trading volume and positive technical indicators.