NAIROBI (CoinChapter.com)—Cardano (ADA) is approaching a key moment as it trades just below a symmetrical triangle formation on the daily chart. At $0.3585, down 2.57% at press time, the token shows mixed signals, leaving the market uncertain about its next move. Analyst Dan Gambardello, the founder of Crypto Capital Ventures has given the possible ADA price prediction to be $0.50 by the end of October but for that to happen it has to break through its current resistance.
Analyst Forecasts Bullish Breakout to $0.50
Crypto analyst Dan Gambardello, founder of Crypto Capital Ventures, has added to the optimistic sentiment surrounding Cardano. Gambardello predicts ADA could reach $0.50 by the end of Oct., a potential 41% increase from its current levels. For this to happen, ADA needs to first clear the $0.36 resistance level, where it currently hovers.
Gambardello’s outlook comes as ADA shows stability, even as the broader crypto market saw a 2.1% increase over the weekend. Should bullish momentum continue, ADA may be able to push through the $0.36 level, with a potential rally toward $0.50.
Will Cardano (ADA) Break Through $0.36 Resistance?
Cardano’s current symmetrical triangle pattern suggests that a sharp price move is imminent. This pattern, forming near the $0.3600 mark, typically signals a period of price consolidation, followed by a price shift. However, ADA’s indecision leaves the market waiting for a clear direction.
To confirm a bullish breakout, ADA needs to break above the triangle’s upper resistance line. An increase in trading volume is crucial for this move. Without it, ADA might find it difficult to push through the $0.3969 resistance level.
The RSI, at 46.96, shows ADA in a neutral zone. With the Bollinger Bands narrowing, volatility seems to be decreasing, adding to the prevailing uncertainty. A breakout would require ADA to move beyond $0.3969 and push the RSI over 50.
ADA Derivatives Data Reflects Caution
In the derivatives market, Cardano has seen a massive drop in long positions, decreasing by 45.34% to $267.12 million. Open interest has also decreased slightly, falling by 0.75% to $233.91 million. Additionally, there’s been a sharp decline in options trading, with volume plunging by 92.94% to just $6.59K.
Interestingly, in contrast to typically strong performances in October, ADA has declined by 10.57%, deviating from historical trends.
On-chain Data and Social Dominance Could Fuel Breakout
Moreover, on-chain data paints a mixed picture for Cardano. Network growth remains positive, albeit marginal at 0.09%, while large holders have reduced their positions, with concentration levels down 0.53%. Whale activity remains neutral, contributing to market indecision.
Additionally, high-value investors remain active, however, with ADA recording $24.3 billion in transactions over $100,000 in the past week, indicating continued interest from major players. Still, only 21% of ADA holders are currently in profit, with 73% out of the money.
Cardano’s social dominance stands at 0.491%. If community engagement increases, it could fuel a breakout, especially given the role of social buzz in driving price movements.
In conclusion, Cardano stands at a critical juncture. While a breakout is possible, ADA will need strong market sentiment and volume to push higher. With mixed on-chain data and the weight of historical performance, ADA’s future remains uncertain. However, increased social engagement and market interest could help tip the scales in favor of a breakout.
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