Cardano’s native token is among the best-performing cryptocurrencies (from the top 10 club) over the past week.
Its renewed momentum has naturally drawn more attention, with some market observers now projecting further gains.
The Rally Goes on?
ADA experienced a sudden and rather unexpected revival this weekend, rising to a monthly peak of around $0.19. As of this writing, it trades just south of that mark, representing a 13% increase on a seven-day scale.
The most probable catalyst for the upswing seems to be the accumulation from whales, with Ali Martinez revealing that these big investors have purchased more than 240 million tokens in just five days.
Meanwhile, X user JAVON MARKS believes that ADA’s recent performance resembles that of 2020-2021, which was followed by a massive bull run towards an ATH. That said, the analyst set a target of $2.90, which is currently 1,300% away.
Leon Voss Official also chipped in, claiming that ADA has broken above a long-term descending trendline that had acted as persistent resistance.
“Daily candle comes on stronger side and now obvious touch the support for further confirmation to hold above $0.17. That’s connected to Cardano TVL surge by some +9% over the past week, reclaiming a level of nearly $68 million,” the X user added.
For their part, Crypto Tony said they will look for a short position upon a potential rejection of the recent rally or go long if the price flips the $0.22 zone.
Entering a Dangerous Territory
ADA’s pump is more than evident, yet one should keep in mind the unfavorable condition of the broader crypto market, meaning the bears can regain control at any time and quickly erase the gains.
The Relative Strength Index (RSI) should serve as another warning. Its ratio briefly spiked above 80, easing back to 65, which still keeps it hovering near overbought territory and signals a potential short-term correction.
Source: CryptoPotato
