Cardano (ADA) price surges 3.67% today, reaching $0.83, and gradually nears the $1 psychological mark. Fueling the anticipation of ADA price hitting the $1, Charles Hoskinson recently teased NFT-based free transactions on Cardano after the Midnight upgrade. Betting big on the possibility of Cardano price rising before Midnight release, 75% of Binance traders are hopeful.
Cardano Price Analysis Triggers Inverted Head and Shoulders Pattern Breakout
Cardano price has surged nearly 30% since last week’s low at $0.64, surpassing the long-standing supply zone at $0.75. This critical resistance held the altcoin price under consolidation since March 9, for almost 60 days. Cardano rally surpassed the overhead supply pressure on May 9 with a decisive daily closing price of $0.7774 above the zone and 23.60% trend-based Fibonacci level at $0.7593.
During the consolidation, Cardano price formed an inverted head and shoulder pattern as highlighted in the price chart. The neckline of the pattern overlapped with the 23.60% Fibonacci level and marks a price target of $1.08, evaluated by adding pattern’s height to the neckline.
Recovery run in ADA surpasses the 200-day Exponential Moving Average (EMA) and influences a positive shift in 50, 100 and 200 EMAs trend. This increases the golden crossover chances in the 50 and 200 EMAs. Furthermore, the MACD and signal lines regain positive alignment with rising histograms, signaling a new wave of bullish trend.
The 50% Fibonacci level coincides with the $1.08 price target based on the pattern breakout, teasing a 30% upside potential.
Conversely, a bullish failure to hold above the $0.75 resistance turned support zone will nullify the pattern breakout. This could risk a pullback to the 50-day EMA at $0.70, followed by the next support level at $0.55.
Binance Traders Confident on ADA Price Breakout
As Cardano price trend gains momentum, Coinglass data shows anticipation in the derivatives market surging high. The ADA Open Interest (OI) has surged by 2.62% to $964 million with the funding rate floating above 0.011%. This highlights increased bullish activity as OI grows.
Notably, the Binance traders showcase confidence as 75% of Binance accounts hold long ADA positions. This increases the leverage-driven price rally chances and fuels bullish sentiments.
Charles Hoskinson Hints at Free Transactions With NFTs as Access Pass
In a recent interview, founder of Cardano, Charles Hoskinson made strong claims about possibly enabling free transactions with the upcoming Midnight sidechain. Powered by NFTs, where each NFT acts as an access pass, enabling a set number of transactions per day for free. With this innovation, the founder hints at a model similar to Web2 with free accounts and services, without the need for a native token. Following the founder’s comment, the community is excited with many expecting this utility-first approach to fuel adoption spree before the Midnight rollout. This could fuel the next bullish wave in ADA prices.
In conclusion, as technical signals support the rising optimism in Cardano, the $1 price target seems imminent. Furthermore, the tailwinds from Binance traders and Charles Hoskinson’s claim on the Midnight upgrade hint at a longer uptrend.
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