- ADA formed a descending channel, signaling the end of the downtrend.
- If buyers in the spot and futures markets become aggressive at the same time, the price could reach $0.68.
If things go as expected, Cardano (ADA) holders may have something to cheer about. That’s because cryptocurrency analyst Ali Martinez pointed out that the price could soon reach $0.68. Martines noted in his post that ADA formed a descending triangle on the daily chart.
A descending triangle is a technical pattern characterized by a decreasing upper trend line and a second horizontal trend line lower than the first. This pattern usually indicates the end of a downtrend.
ADA should remain at $0.53 before the jump.
After a downtrend ends, the associated cryptocurrency may consolidate for a while before a series of higher highs emerge. However, Martinez pointed out that Cardano would need to close above $0.53 to prove its bullish case.
#Cardano The daily chart shows a descending triangle pattern. If the daily close remains above $0.53, a 32% rally could begin, potentially $ADA Up to $0.68! pic.twitter.com/DoizuVPiRI
— Ali (@ali_charts) February 8, 2024
At press time, the price of ADA was $0.52 due to an impressive 10% increase in the last 24 hours.
With this achievement, Cardano achieved the best performance among the top 10 cryptocurrencies. For example, Binance Coin (BNB) is up 4.04% and Solana (SOL) is up 6.70%, but no other altcoin has come close to double-digit gains like ADA.
Despite the price increase, Cardano’s social dominance fell to 0.596%. When it comes to price action, social dominance can tell when value is near a bottom or top. Had there been a surge in social dominance, ADA would have been near the top of the region.
Since the indicator has fallen, it suggests that the price of ADA is likely to rise further. Interestingly, this prediction was consistent with the analyst’s view mentioned above.
Additionally, AMBCrypto has observed a surge in trading volume for Cardano. On February 7, ADA trading volume was 269.25 million.
Source: Santiment
Buyers seem ready to break in.
However, at the time of reporting, the issuance amount was 599.29 million, showing a huge increase in one day. If volume continues to increase along with price, ADA could hit $0.68, a 32% increase.
Traders may also want to watch out for cumulative value delta (CVD).
AMBCrypto confirmed that aggregated spot CVD was negative using data from Coinalyze. A positive CVD means buyers are aggressive. So here a negative CVD indicates the presence of an aggressive seller.
For ADA to reach $0.68, buyers must tolerate seller aggression. Meanwhile, Open Interest (OI) seemed to support Cardano’s price increase.
Read Cardano (ADA) price prediction for 2024-2025
At press time, OI had increased significantly. This increase suggests that the buyer’s net positioning has become more aggressive than that of the sell side.
Source: Coin Analysis
But that was for the derivatives market. If ADA is targeting a 32% increase in the near term, buyers in the spot market will need to show a similar level of aggression as buyers in the futures market.