TL;DR
- Cardano (ADA) is a blockchain platform that competes with Ethereum (ETH) and has seen a 54% increase in trading volumes in the last 24 hours.
- ADA’s price has been fluctuating since late 2023, reaching a high of $0.66 and a low of $0.50, and is currently facing a major resistance at $0.53.
- Crypto analyst Ali Martinez predicts that ADA can break out of its downward trend and rise by 32% to $0.68 if it can close above $0.53 for a day.
Cardano is a blockchain platform that has been developing its ecosystem for years. Its native token, ADA, had a remarkable price surge in late 2023, after a long period of decline and stagnation. The cryptocurrency, which aims to challenge Ethereum (ETH), has experienced many ups and downs in recent months.
According to CoinGlass, Cardano (ADA) saw a significant increase of 54% in its trading volumes in the past 24 hours. This pushed the total value of trades in both spot and derivatives markets to nearly $1 billion, which is 5.88% of the cryptocurrency’s market capitalization.
It began to rise from around $0.25 in mid-October 2023, reaching $0.66 in mid-December and then mostly dropping since then. However, the token has shown a sharp increase in the last 24 hours, and it could still recover from its downward trend. Currently, Cardano is the eighth-largest digital asset, with a market capitalization of $17 billion, according to CoinMarketCap.
Cardano Has a Major Hurdle to Overcome at $0.53
On Tuesday, Cardano’s price opened at $0.50, in a zone where two 60-day trend lines converged. The key support level was also at $0.50. The ADA tokens displayed some interesting market indicators as a result. The cryptocurrency also exhibited some intriguing technical indicators, such as a falling wedge and a rising trading volume.
The higher trading volume warrants a closer look at ADA’s price movements. The ADA price chart shows a consistent drop since mid-December, with a 3.33% decrease today. The lack of clear support for the ADA price in this area indicates a possible fall to $0.38 per token, which is a 22% drop from its current level.
Ali Martinez, a well-known crypto analyst, posted on X on Thursday, February 8, that Cardano (ADA) has entered a descending triangle formation on the chart, which is a negative indicator in technical analysis (TA).
#Cardano shows signs of a descending triangle formation on its daily chart. A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68! pic.twitter.com/DoizuVPiRI
— Ali (@ali_charts) February 8, 2024
This formation occurs when the price makes lower highs and a lower resistance level, forming two trendlines. However, Martinez thinks that ADA can still reverse this trend and surge by 32%, reaching $0.68, if it can close above $0.53 for a day.
