An analyst has highlighted that Cardano is currently following a parallel trading pattern, indicating that ADA could reach $1.5 in the near future after experiencing a 38% increase in the past month.
There has been a significant increase in ADA holdings by whales, with the top 1% of addresses showing a sharp spike in ownership. This suggests a growing interest in the project’s future.
Over the past month, Cardano has seen a gain of almost 40%, riding the positive price trend in the broader market. It reached its highest price in the past two years, just below $0.80. Investors are becoming increasingly excited about the cryptocurrency. Analysts are now predicting that ADA will surpass $1 in the short term, as large quantities of ADA have been accumulated by bullish investors over the past week.
Currently, Cardano is trading at $0.7443 and has seen minimal movement in the past 24 hours. The trading volume has significantly decreased as the market cools down after recent intense activity.
Although the token has only experienced a 4.4% gain in the past week, it witnessed a surge at the end of February. Its price rose from $0.5753 on February 26 to $0.7947 on March 4, marking a 38% increase within a week. Despite a slowdown in momentum, the token has maintained a price above $0.7 since reaching new highs almost two weeks ago.
Analysts anticipate that ADA’s price momentum will lead it to $1. Dan Gambardello, the founder of Crypto Capital Venture, predicts that the token will reach $1.5. He shared a chart on X, showcasing a trading pattern that ADA has been following, culminating in a breakout towards $1.5.
Another analyst, known pseudonymously as Trend Rider on X, believes that Cardano’s market movements resemble the 2021 bull rally, during which the token surged from $0.2 in January to $3 in September, its all-time high.
The analyst referred to a ‘parabolic red line,’ which indicates an imminent price surge once it surpasses the token’s current price. They also claim that this phenomenon occurred in Bitcoin months ago, before the leading cryptocurrency reached a new all-time high above $73,000.
Whale accumulation of ADA is seen as a bullish signal, as it suggests that those holding large amounts of the token have confidence in its future. CoinMetrics data reveals that the top 100 addresses have been accumulating ADA tokens since the beginning of the month. The graph also shows that the top 1% of Cardano addresses have been accumulating tokens in recent days, indicating their expectation of a price increase in the coming weeks.
After surpassing the $0.75 resistance earlier this month, Cardano’s next resistance level is at $0.98. The last time it breached this level was in 2021 before setting a new record. Analysts have noticed that the token’s Bollinger bands are showing a similar expansion to their 2021 trend, just before ADA surpassed the $0.98 resistance.
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