Cardano price is looking at a potential breakout, which could propel the altcoin toward new year-to-date highs.
However, ADA is also vulnerable to a decline, which could be triggered if the profit-taking sentiment intensifies.
Cardano Whales Noting a Bullish Comeback
Whales’ move largely impacts Cardano’s price, be it buying or selling. This was evident in how ADA moved over the past few weeks as the whales opted to offload their holdings.
However, this changed in the previous ten days when addresses holding between 1 million and 10 million ADA accumulated nearly 50 million ADA worth $30.3 million. This pushed their total holdings to 5.79 billion ADA.
This is a bullish signal which translates to an increase in Cardano price.
Secondly, the price daily average addresses (DAA) divergence is presently observing a sell signal. The price-DAA divergence compares an asset’s price movement with the number of active addresses daily. A divergence occurs when there’s a significant difference between the two metrics, suggesting potential changes in price momentum, investor sentiment, or network adoption.
Read More: How To Buy Cardano (ADA) and Everything You Need To Know
In the case of Cardano, the price is rising, and DAA is dropping, a sell signal is being flashed, which, while it seems bearish, is inherently bullish since it suggests a short-term price rise is likely.
ADA Price Prediction: Expect a Massive Rally
Cardano price, at the moment, is charting candlesticks moving in a falling wedge pattern, generally known to be a bullish reversal pattern, as rallies tend to take place following a breakout.
Based on this pattern and the fact that ADA is close to breaking out, Cardano’s price will likely post a 32.91% rise. This would bring the third-generation cryptocurrency to $0.813.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
However, if the sentiment of selling, as noted on the price DAA divergence, intensifies, a drawdown could occur. Consequently, Cardano’s price would invalidate the falling wedge pattern and bullish outlook, sending ADA to $0.500.
Disclaimer
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