Cardano (ADA), a hugely popular altcoin, continues to consolidate in a tight price range that has narrowed over time. ADA, the eighth-largest cryptocurrency, as we reported on Kriptokoin.com, now looks ready for a significant price action after enduring a long period of recession.
The altcoin, which has gained momentum recently, has become the focus of attention of crypto money investors
Cardano (ADA) appears to be gaining momentum for significant price action as mid-cap holders increase their positions. Analyzing the data from Santiment, it becomes clear that there is a significant increase in the buying pressure behind Cardano despite the sluggish price action. The on-chain, social and financial analytics firm has confirmed that addresses holding between 10,000 and 100,000 ADA have entered an accumulation phase, adding more than 79 million altcoins to their wallets in the past month. Commonly referred to as “sharks,” these medium-sized cryptocurrency holders currently account for more than 10 percent of all ADA holdings. Meanwhile, “whales” holding 100,000 to 10 million ADA have stopped selling their cryptocurrencies.
The sudden increase in buying pressure could positively affect Cardano’s price. ADA appears to be consolidating within a descending triangle on its daily chart. As prices approach the top of the pattern, the probability of an explosive price action increases. Further upside pressure could help Cardano overcome the $0.50 resistance and trigger a bullish breakout. Depending on the height of the apex of the triangle, ADA could gain up to 52 percent upside towards a target of $0.70.
Cardano price chart
Cardano (ADA) must stay above the $0.43 support level to have a chance to rise higher. Failure to stay above such an important price point can be perceived as a sign of weakness that encourages investors to sell their holdings. If this happens, ADA could drop to $0.38, or even as low as $0.24 if the downtrend continues.
This pessimistic thesis coincides with Peter Brandt’s assessment of Cardano’s price action. The cryptocurrency analyst argues that to avoid a negative outlook, ADA must break above the June 16 high of $0.55. On the other hand, Cardano’s price continues to drop for the second day in a row, but trading activity has increased by more than 10 percent. While the lateral trend continues within a descending triangle, it did not create any significant buying momentum over the weekend.
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