The recent rise in Cardano (ADA) price is capturing interest in the cryptocurrency market, but analysts caution against excessive optimism.
Technical Analysis of Cardano
ADA's price action has shown improvement after rising from $0.72 to $0.86, breaking resistance levels at $0.75 and $0.80. Currently, ADA is trading at $0.8496, above its 100-hour simple moving average and holding a bullish trend line at $0.8280. However, investors remain cautious, hesitant to declare a full trend reversal.
Market Context: Altcoin Dynamics
The total cryptocurrency market cap excluding Bitcoin stands at $1.47 trillion, up 37% from previous levels. Analysts noted that ADA's large holder netflows are neutral, while whale accumulation in ETH and SOL is visible. This raises questions about ADA's near-term appeal, despite structural improvements and increasing developer activity.
Expert Forecasts: Expectations for the Future
Experts suggest that ADA could reach $0.94 in the next 30 days if market conditions remain stable. Analysts from 3Beasts anticipate a breakout to $1.10 if ADA clears the $0.88 resistance. However, the consensus indicates that a catalyst, such as DeFi growth or staking improvements, is needed for ADA to sustain movements above $1.
Latest research indicates that ADA is at a critical juncture. Its recent price increase enhances technical indicators, but to achieve sustained growth, it must break the $0.8650 resistance level. Investors are advised to closely monitor market trends and the activity of large holders.
