Cardano (ADA) has been making significant strides in the crypto market, maintaining a bullish bias for over three weeks as it follows an ascending trendline, recording higher highs and higher lows.
However, despite this impressive performance, the altcoin’s gains have been capped by the 200-day Exponential Moving Average (EMA), causing ADA to trade sideways since the beginning of the month.
This raises the question of whether ADA will continue its bullish streak and break above the 200-day EMA or face a potential correction in the near future.
Cardano’s Potential To See 30% Growth
According to Coingecko, Cardano’s current price is $0.399106, having experienced an 8.1% rally over the past seven days and a 0.9% rally in the past 24 hours.
Cardano’s price trajectory remains optimistic, with the possibility of maintaining its position above the 200-day EMA at $0.396 if buying momentum continues to increase. A successful flip of this hurdle into support could cement the ongoing uptrend, opening the path for further gains.
Image: Binance Academy
The next significant resistance level for Cardano is at $0.427, last tested in November before the FTX exchange meltdown caused a market-wide plunge. If the cryptocurrency can break through this resistance level, it could continue its ascent towards the $0.50 mark, indicating a remarkable 30% gain from current levels in highly bullish cases.
Retail Investors Bullish On Cardano’s Ecosystem Potential
Cardano’s bullish trend even received a better boost from recent data showing that retail investors held 66% of the ADA supply, according to Cardano Feed on Twitter. This statistic not only underscores the strong confidence the community has in the digital asset but also highlights its potential for growth.
One of the key drivers attracting retail investors to Cardano is its thriving ecosystem of applications, which has enabled the network to outperform industry giants like Ethereum in staking participation.
However, despite this positive outlook, market analysts warn that in a worst-case scenario, Cardano’s price could retest the March lows around $0.336, followed by the $0.323 support levels, or even dip further to tag the $0.296 support level. This would translate to a 25% plunge from the current price and potentially signal a trend reversal.
Crypto total market cap up a few digits and currently at $1.15 trillion on the daily chart at TradingView.com
It is worth noting that factors such as regulatory developments, market sentiment, and competition could impact Cardano’s price action in the coming months. Nonetheless, with a combination of Cardano’s growing ecosystem, strong community support, and recent positive price action, Cardano’s long-term prospects remain bright.
-Featured image from Freepik