Cardano (ADA) breakout signals: Brace for 32% rally ahead

The price of Cardano is really at the limit of the escape level from the downward trend, with a target of jumping by 32%. This makes Cardano very attractive for big investors, who, in the last ten days, have reached a quantity worth more than $30 million. This often results in a signal to sell based on the divergence between the price and daily active addresses, as people usually take their profits.

The price is on the brink of a major breakout that should take Cardano to new yearly highs for this altcoin. However, this week will show whether prices stagnate from here on out or gather strength for another assault on the yearly highs.

Whales—generally used to mean large Cardano investors—have begun to show signs of a turn towards positivity. The only reason why whales have a great impact on the price of Cardano, be it during the time of purchase or sales of Cardano, can be seen after the few past weeks when whales started to offload their assets.

But that tide changed over the last ten days. During this time, the accounts holding between one million and ten million ADA bought nearly fifty million ADA, valued at around thirty point three million USD, effectively taking their total ADA holdings to five point seven nine billion.

This buying spree is a positive indicator, suggesting a potential rise in Cardano’s price.

Cardano’s price currently has the daily active address (DAA) average at a divergence that posts a signal to sell. This divergence analysis compares the movement of the asset’s price against the daily count of active addresses.

Whenever the gap is very big, it tells either of two possible shifts in the price momentum or how the investor feels about the network’s adoption level.

In the case of Cardano, this is the point at which prices are appreciating. Still, the daily average number of active addresses (DAA) is decreasing, which sends a sell signal. The first impression is that it takes a bearish view, but it takes the development view that prices are heading into a bullish trend for the short run.

The current trends in Cardano’s price action are forming what is known as a falling wedge pattern in the candlesticks. It is always taken more as a sign of bullish reversal, and from this pattern’s breakout, we can expect a very good rally in the price as per our ADA price prediction.

The observed pattern and ADA’s near breakout suggest that Cardano’s price is at the brink of a 32.91% upswing; if it touches this level, the third-generation cryptocurrency could reach $0.813. Now, if the sentiment to sell, as pointed out by the divergence of the DAA to price, increases and becomes stronger, then this could be the move to the downside. This would invalidate the present falling wedge pattern on Cardano and its bullish outlook, which could mount further downward pressure on ADA towards $0.500.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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