With the crypto market recovery gaining momentum, Cardano leads the way with a near 10% rise. Will this lead the ADA price to $1.50?
With Bitcoin price BTC $97 194 24h volatility: 1.5% Market cap: $1.92 T Vol. 24h: $47.64 B crossing above the $97,000 mark, the ninth-biggest cryptocurrency Cardano ADA $1.04 24h volatility: 8.3% Market cap: $37.48 B Vol. 24h: $1.34 B reclaims the $1 psychological mark. With a 9.82% jump in the past 24 hours, Cardano holds a market cap of $36.94 billion.
This marks a strong recovery after recent market fluctuations. With the bullish trend hinting at a $37 billion market cap on the horizon, will Cardano continue the rally to hit the $1.50 psychological mark?
In the daily chart, the ADA price trend reveals two consecutive bullish candles. These bullish candles signify growing market confidence.
This accounts for a price surge of 5.40% and an intraday gain of 5.82%. The bullish recovery continues the streak of lower-high formations, which indicates consistent upward momentum.
Currently, the recovery rally in Cardano comes as a positive flow within a triangle pattern. Furthermore, the bounce back from the support trend line comes with a positive divergence in the RSI line.
This divergence underscores the increasing strength of buyer activity. The recovery run has surpassed the trend-based Fibonacci level of 23.60% at the $1 psychological mark.
Amid the increasing chances of a triangle breakout rally, the trend-based Fibonacci levels paint a price target at $1.38 and $1.554. If these levels are achieved, it will represent significant gains for Cardano investors. Hence, the rising bullish interest in Cardano price highlights an upside potential of nearly 50%.
On the flip side, the crucial support remains the 50 and 100 EMA lines at $0.936 and $0.814. These levels will play a key role in preventing any sharp pullbacks. With the recovery run in Cardano gaining momentum, the derivatives analysis gives a positive insight.
The open interest of Cardano has reached $1.27 billion, recording a nearly 15% rise over the past 24 hours. This sharp increase indicates growing participation in the market. Furthermore, the bullish positions have significantly increased compared to the short-selling positions.
This is highlighted by the long-to-short ratio of 1.027 over the past 24 hours. The rising ratio reflects a clear shift toward bullish sentiment. In support of the bullish narrative, the volume-weighted funding rate has also increased to 0.0098% from the recent drop of 0.0020%.
Hence, the rising open interest, funding rate, and improving long-to-short ratio highlight a strong bullish trend possibility in Cardano. This aligns with the broader market recovery, signaling optimism among traders.
In a recent X post, Ali Martinez, a crypto analyst, highlighted the increased whale support for Cardano. Over the past 48 hours, the Cardano whales have accumulated nearly 100 million ADA tokens.
Whales have bought 100 million #Cardano $ADA over the past 48 hours! pic.twitter.com/5ccxVoiljo
— Ali (@ali_charts) January 15, 2025
This clearly explains the ongoing rally in Cardano. Furthermore, it also increases the chances of a bullish continuation as the broader market recovers.
With strong whale accumulation, rising open interest, and bullish technical indicators, Cardano shows significant potential for further gains. If momentum continues, ADA could break the $1.50 mark in the near term, offering a nearly 50% upside for investors. However, monitoring key support levels and broader market trends will be crucial to sustaining this rally.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
