During Tuesday’s U.S. market session, the crypto market witnessed a surge in selling following Bitcoin’s struggle to $100k. While the BTC’s downtick stalls broader market recovery, the Cardano price shows potential for a quick rebound as whale buying bolsters a multi-year breakout.
Currently, the ADA price trades at $1.04 with an intraday loss of 4.7%. According to Coingecko, the altcoin’s market cap wavers at $37.8 Billion, while the trading volume is at $1.85 Billion.
Key Highlights:
- Cardano price correction witnessing renewed whale interest shows potential for a bullish turnaround.
- The formation of a cup and handle pattern influences the current recovery trend in ADA.
- The $1.25 level, as the neckline of the C & H pattern, stands as the key resistance level against buyers.
Cardano Price Set for Reversal as Whales Add 10M ADA
The Cardano (ADA) network has witnessed significant whale activity in the past 24 hours, as large investors have reportedly accumulated 10 million ADA tokens. The data, shared by a renowned market analyst, Ali Martinez, highlights a sudden surge in whale interest, sparking speculation about a potential rally in ADA prices.
Historically, such large-scale accumulations have been associated with a key market reversal and growing confidence in the asset’s long-term potential. Thus, the occasional market downtick could boost buying activity in Cardano price, projecting a potential for quick recovery.
Cup and Handle Formation Sets ADA on Path to $4.26
Over the past five weeks, the Cardano price has showcased a sideways action, struggling to sustain above the $1.24 resistance. This consolidation, when looked at in a weekly chart, shows the crucial retracement phase of a classic reversal pattern called cup and handle.
This pattern is characterized by a “U-shaped” recovery (the cup) followed by a smaller consolidation or pullback (the handle) before a potential breakout. The cup represents a period of accumulation after a significant decline, reflecting growing bullish sentiment.
If the pattern holds true, the ADA coin correction could avoid a breakdown below $0.82 support.
On the other hand, the renewed market bullishness could drive the asset up 20% to breach the $1.25 neckline. A potential breakout could pave the way for Cardano to target key levels at $2.5, followed by $3.2, and ultimately $4.26.
Also Read: MicroStrategy to Raise $2B via Perpetual Pref Stock Offering
