Analyst Ali Martinez has identified a breakout signal on Cardano (ADA) chart, highlighting the continuation of its recent bullish comeback.
Cardano (ADA) experienced notable volatility over the past week, with a surge pushing its price above $0.80 on February 11 before retracing slightly. Earlier in the week, ADA fluctuated between $0.65 and $0.72, with a brief dip before the rally.
Amid this performance, market analyst Ali Martinez has identified a falling wedge breakout on ADA’s price chart, suggesting a bullish reversal. The chart showed ADA trading within a descending triangle before breaking above the upper trendline.
Confirmation of the breakout came as ADA closed a strong candle above the resistance trendline. Based on this pattern, Martinez projected that if momentum holds, ADA could rally toward $0.83.
However, it is important to note that false breakouts could occur, making it essential to watch for other indicators like RSI and MACD.
Notably, the Relative Strength Index (RSI) stood at 40.31, slightly above the oversold threshold of 30, signaling weak momentum but some buying interest. If RSI moves past 50, it would indicate stronger bullish momentum.
The Moving Average Convergence Divergence (MACD) indicator remained in bearish territory, with the MACD line below the signal line. However, decreasing red histogram bars suggested weakening selling pressure. A bullish trend reversal could materialize if the MACD line crosses above the signal line.
Cardano Whale Accumulation Trends
Elsewhere, market intelligence firm Santiment reported an 11% rise in Cardano’s market capitalization. This increase coincided with continued accumulation by large ADA holders.
Wallets holding at least 1 million ADA have steadily increased their holdings since November 2023, adding 1.41 billion ADA. This accumulation now accounts for 2.35% of Cardano’s total supply, suggesting growing confidence among institutional participants and whales.
Santiment noted that ADA’s price had surged 107% since the accumulation trend among large holders began.
IntoTheBlock data provided further insights, revealing that long-term ADA holders expanded their positions by 1.81%. This shift indicated a strengthening commitment among investors holding assets for over a year.
Latest Cryptocurrency News – The Crypto Basic – Read More