According to the most recent news, the price of Cardano ADA was still above $0.46 on Tuesday, consolidating the bullish momentum of the past 8% increase in the last day and nearly 10% weekly price increase of the alt. Cardano ADA increasing price matches the overall bullish trend in the market which was driven by positive sentiments surrounding the Federal Reserve and their anticipated rate-cut expected soon.
Popular currencies of the likes of Bitcoin, Ethereum, XRP and Solana also posted significant bullish price movement and gained strength across the alt coin market.
One of the most significant contributing factors on the recent strength of ADA price trend is the performance in the breakout of a significant downward trend line that has limited the price action since the start of October.
The significant price action breakout suggests a possible reversal of the trend to the upside which has renewed bullish sentiment and confidence. The announcement of the listing of Midnight NIGHT token on Binance Alpha on December 9 was the icing on the cake sentiment wise for the Cardano Ecosystem. Moreover, users that qualified for the airdrop have also started receiving NIGHT airdrop tokens which has fueled even further activity in ADA correlated assets.
Trendline Breakout Indicates 30–40% Price Increase
Crypto analyst Charts noted that one of the four hour charts of ADA recently showed a breakout of a very significant trendline. Such a development means that ADA could see some very bullish price action. Cardano has shown some very gradual downtrends with lower high formations on the charts for a couple of weeks.
ADA has broken a major resistance line on. This is the first major bullish shift in price in over 2 months. This trend has continued for nearly half a month. This means that the majority of players who trade ADA on the market are bullish on the price action for the altcoin.
Coinmarketcap and other major market founding services show that the market is pricing ADA bullishly. The price action has remained within a bullish wedge formation and has shown a stronger close in the candles than previous bullish price action on ADA. This means that ADA is likely going to have a strong bullish price action and would lead the other altcoins into bullish price action
Funding Rate Flip Confirms Increasing Optimism
ADA’s other positive feature is the decrease in the funding rate for ADA. This has increased positive price correlation to other altcoins. This is a positive sign. Derivative markets have shown that players are bullish on ADA. This is a major sign that price increases are to follow
Funding rate statistics are showing that many investors are pricing ADA to be bullish. The positive correlation with bearish sentiment in the funding rate is suggesting that a bullish trend is likely to emerge. Also showing that many players are on the market betting for ADA to increase is bullish sentiment that is on the rise.
ADA is targetting $0.50 now that bullish indicators have strengthened
ADA rose by 8% to hit $0.4701 during the latest trading session. Volume trends suggest that buyers are taking positions rather than selling immediately. This is ada’s third time attempting to breach the $0.47 resistance area on the 4-Hour charts, indicating a higher probability of that breakout leading to higher increase, confirming upward movement with a greater likelihood.
ADA’s next target will be the next psychological $0.50 milestone, which ADA will likely meet. Once that resistance is hit, ADA will be able to target the next target which is $0.55, where likely selling pressure will be present.
Signed bullish indicators have also strengthened the technical outlook. The MACD has been increasingly supporting the bullish outlook with a buy signal now that the MACD crosses above the signal line. Also, the Chaikin Money Flow (CMF) is remaining positive at 0.13, indicating that ADA is being sustained at higher levels continuously, supporting bullish flows.
