Cardano is seeing a bullish price rebound, with key metrics like trading volume soaring, igniting speculations of a possible $2 breakout.
By Godfrey Benjamin
Updated
3 mins read
Cardano ADA $0.67 24h volatility: 4.8% Market cap: $23.95 B Vol. 24h: $626.90 M is in the spotlight again as its price is gaining momentum, fueling a potential breakout projection for the coin. Cardano has seen its trading volume increase, more fund inflows, and a growing futures market, setting it up for a possible push to the $2 resistance mark.
Cardano price was $0.7686 at the time of writing, showing a 2.96% price gain in the past 24 hours. On-chain data shows that the coin has gained 6.46% in the last 7 days, indicating stable price growth.
CoinMarketCap data shows that Cardano’s trading volume has increased by 11%, reaching a record of $1.02 billion. This increase in activity indicates growing investor confidence in ADA price swings.
Last week, crypto analyst Ali Martinez disclosed that whales purchased 190 million ADA, leading to a 2.24% price increase. Despite this rally, analysts have pointed to $1.90 as a major long-term resistance level. If Cardano can break past this price point, it could trigger a rally toward $2.
Earlier this week, ADA traders took advantage of the significant buy wall established near the $0.70 support level. This means traders and investors accumulated ADA in anticipation of further gains.
Meanwhile, many experts believe the current Bitcoin price movement may play an important role in Cardano’s performance.
Traders and investors have shown increased positivity this week, driven by Bitcoin’s rise above $88,000. This new price direction has brought confidence to the market and has caused more investment funds to flow into the digital asset economy.
When Bitcoin prices rise, altcoins like Cardano also see gains, a pattern that has played out many times in the past.
Cardano is struggling to break past the $1.90 resistance mark, but strong buying activity at lower levels shows that investors are still confident. If Bitcoin continues its bullish pattern, as some experts forecast it could reach $110,000 and display a rub-off on Cardano.
Futures market data further support Cardano’s bullish outlook. Open interest in ADA futures has risen to $785.91 million, indicating increased speculative activity.
For context, growing open interest often shows that traders and investors are preparing for a significant price swing.
Likewise, the funding rate for ADA futures suggests that long and short positions are balanced. This means that traders are not expecting a sudden price drop but rather holding their positions in anticipation of an upward move.
Generally, stability in the futures market often serves as a precedent for steady price growth, reducing the likelihood of sharp declines.
This is why many experts speculate that the next few days will be crucial for Cardano. If the price successfully breaks through the $1 and $1.9 resistance levels, it could set the stage for a move toward $2.
However, failure to surpass this level might result in consolidation. Still, the positive trend with Bitcoin makes the market more confident for a dramatic price swing.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
