Cardano's Climb to $1.20 Could Signal Further Growth for ADA
In a recent development, Cardano (ADA) has shown promising signs of bullish momentum, with the June high at $0.73, previously a resistance level, now reclaimed as support. This shift is also evident on the 2-hour timeframe, where Cardano was at the $0.78 level, a resistance in the past, but now potentially flipped to support.
This potential flip in support levels could make Cardano an attractive buying opportunity, so long as it stays above the $0.755 level on the 2-hour chart. A set of Fibonacci retracement levels has been plotted using swing points from late June and July at $0.51 and $0.937 on the Cardano (ADA) price chart. The Fibonacci extension levels at $1.03 and $1.2 are the next targets for Cardano.
Recent analyses suggest that Cardano is currently experiencing strong price gains and improved on-chain activity, which could propel it toward price targets like $1.50 or even higher under favorable conditions. Some forecasts are optimistic about ADA reaching $2 to $3 or more by the end of 2025, contingent on successful network upgrades, increasing institutional adoption, and favorable macroeconomic environments.
However, it's important to note that ADA's upswing often still correlates with Bitcoin and overall altcoin market strength. Technical factors such as the “Golden Cross” pattern and monthly accumulation trends suggest potential for a significant positive price move, possibly allowing ADA to partially decouple and rally on its own merits.
Despite these positive indicators, the market-wide cycles still weigh heavily. When Bitcoin and Ethereum turn bearish, altcoins including Cardano tend to follow, limiting the possibility of a completely independent rally.
The daily trading volume of Cardano (ADA) has increased by 74%, indicating increased investor interest. The bullish short-term outlook for Cardano is supported by the technical indicators and the price action on the 1-day and 2-hour charts. The CMF on the 1-day Cardano chart was at +0.06, indicating significant buying pressure. The MACD on the 1-day Cardano chart was on the verge of forming a bullish crossover. The MFI and the CMF on the 2-hour Cardano chart suggest a bullish short-term outlook.
It's worth mentioning that Bitcoin [BTC] is trying to break past the $117.5K resistance but has not succeeded at the time of writing. The area around the June high at $0.73 continues to have confluence from the moving averages on the daily Cardano chart.
As always, it's crucial to remember that the information provided does not constitute financial, investment, trading, or other types of advice. Always do your own research and consider your financial situation before making any investment decisions.
- In light of Cardano's recent bullish momentum, some analysts are looking toward other cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH] for potential price targets, given their correlation with ADA's upswing.
- The daily trading volume of Ethereum has also witnessed an 74% increase, mirroring the increased investor interest in Cardano, suggesting a potential broader crypto market rally.
- As Cardano advances towards price targets like $1.50 or even higher, technology enthusiasts are considering various blockchain projects, such as Cardano, Ethereum, and Cardano's rival, Bitcoin, as long-term investments, reinforcing the broader web of interconnected digital assets that shape the future technology landscape.
