Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, has seen a 3.4% price increase in the past 24 hours. This price rally aligns with a broader recovery in the cryptocurrency market, where Bitcoin and Ethereum have also observed gains of 2.5% and 2.2%, respectively.

Bullish Reversal

Technical analysis suggests that Cardano may be on the verge of a bullish reversal. The cryptocurrency has displayed a “change of market character” and broken above the resistance of a wedge pattern, indicating a potential shift towards a more bullish trend. This positive price action is partly driven by significant accumulation by whales, or investors holding large amounts of ADA.

Data from market intelligence platforms show that Cardano whales (those holding between 100 million and 1 billion ADA) have increased their holdings by 11% over the past 30 days, making up 6.71% of the total Cardano supply.

Such whale accumulation is considered a bullish signal, suggesting that these large investors are positioning themselves for a possible price surge.

Technical Analysis

Data indicates strong buy support for Cardano around $0.36, which could help prevent a deeper correction. However, Cardano faces significant resistance around $0.50. To confirm a bullish continuation, the cryptocurrency must break above the $0.51 level on the weekly chart.

As of now, Cardano is priced at $0.3571, with a 24-hour trading volume of $370.8 million. Its market capitalization stands at $12.6 billion, representing 0.61% of the total cryptocurrency market cap, making ADA the 11th largest cryptocurrency by market capitalization.

Long-Term Trend

Over the past year, Cardano’s (ADA) price has increased by 23.6%, indicating a positive long-term trend. However, ADA has underperformed compared to 58% of the top 100 crypto assets and is still lagging behind major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Cardano’s all-time high price of $3.09 was reached on September 2, 2021, while its lowest price of $0.01925 occurred on March 13, 2020.

The current market sentiment around Cardano is neutral, with the Fear & Greed Index at 50. Despite the recent price drop, Cardano shows positive future market activity. Based on historical breakout patterns, some analysts have predicted a potential short-term gain of 462% and a long-term surge of 1500% to $7.80.

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