Crypto analyst Javon Marks has identified a potential breakout for the Cardano price and forecasts a substantial price increase. The analyst suggests that ADA price could rise by over 260%, with price targets ranging from $2.70 to $2.91.
Cardano Price Eyes 260% Rally To $2.70
Cardano’s price has shown a steady recovery in recent days, with a notable 2.97% increase in the last 24 hours. Meanwhile, according to crypto analyst Javon Marks, Cardano’s chart shows an ascending triangle pattern, often viewed as a bullish continuation signal. This pattern occurs when the price makes higher lows while the resistance level remains relatively flat.
The consistently higher lows suggest growing buying pressure, indicating buyers are willing to accumulate ADA at higher prices. The breakout probability increases as the ADA price nears the triangle’s upper resistance line.
According to Javon Marks, substantial upward momentum could be seen once ADA breaks through the upper resistance level. A similar breakout in the past resulted in a nearly 300% price increase. If this historical pattern holds, ADA could reach its target price range of $2.70 to $2.91, representing a 261% gain. The consistent testing of the resistance level indicates that the breakout might be imminent, making it a favorable entry point for investors.
Long-Term Holders Show Confidence in Cardano Price
Another factor contributing to the bullish outlook for ADA is the increase in long-term holders (Hodlers). Data from IntoTheBlock shows a steady rise in the number of ADA held for over one year, with the Hodlers’ balance increasing by 1.81%. This data points to a growing investor confidence in Cardano’s long-term potential.
Additionally, the number of medium-term holders (Cruisers) holding for 1-12 months has risen by 7.65%. These increases suggest that more investors are holding onto their ADA rather than engaging in short-term speculative trading.
Long-term holders tend to accumulate assets during bullish market phases. The rise in Hodlers’ balance, which has seen an increase in holding time of 77.53% in the last 7 days, suggests that ADA’s investors believe in the project’s future and are willing to lock in their positions. This trend aligns with the broader market sentiment that Cardano is on track for a potential breakout, supported by long-term investor commitment. Furthermore, the balance of medium-term holders has also risen, signaling that more people are shifting their ADA into longer-term positions.
Is a Golden Cross Looming for ADA Price?
In addition to the chart pattern and increasing long-term holders, several technical indicators support a positive price outlook for Cardano. One such indicator is the 50-day Simple Moving Average (SMA) nearing a crossing above the 200-day SMA. This crossing, called Golden Cross, often signals the start of a strong upward movement, as it suggests that the short-term trend is gaining strength. Moreover, the open interest for Cardano’s derivatives is currently at $879.32 million, reflecting a 13.78% increase. This uptick in open interest further supports Cardano’s bullish outlook.
Moreover, the Relative Strength Index (RSI) is currently near 70.79 in the overbought zone. While this typically signals an overbought condition, the price can continue rising even with high RSI levels during a strong uptrend. The RSI’s upward trajectory indicates that ADA still has momentum, supporting Marks’ forecast of a potential breakout.
The Chaikin Money Flow (CMF) is another positive indicator currently at +0.11. This suggests that more money flows into Cardano, reflecting increased buying pressure and continued demand for ADA. As the CMF remains positive, the bullish sentiment surrounding Cardano will likely persist.
The post Analyst Predicts Cardano Price 260% Rally To $2.70, Here’s When appeared first on CoinGape.
