- ADA’s price increased by 7.71%, making it the token with the best recovery in the top 10.
- A break above $0.55 could clear the path to $0.60 if buying pressure stays.
Cardano [ADA] joined the broader market recovery as Bitcoin [BTC] rose past $43,000 on the 29th of January.
Alongside, ADA’s price action in the last 24 hours showed that the altcoin was the best-performing cryptocurrency out of the top 10. At press time, ADA changed hands at $0.53, representing a 7.71% increase.
Bitcoin’s price, as of this writing, was $43,373, indicating that the coin climbed by 2.89%. Regardless, Solana [SOL] was the asset that came closest to ADA’s performance.
According to CoinMarketCap, SOL’s price increased by 6.63%.
Volume rises, backs up the price action
Previously, AMBCrypto had examined Cardano. In the article, we observed that the token was close to a significant recovery. This time, we considered looking at the volume.
According to our analysis of Santiment, Cardano’s volume increased from 294.27 million to 519.56 million. The surge here implies that there was a lot of buying and selling.
Since the price had predominantly increased, it suggested that buyers were the ones driving the market.
Source: Santiment
From an on-chain perspective, if participants continue to fill the buy orders, ADA might extend its northward move. However, if profit-taking follows this uptick, ADA’s price could drop.
AMBCrypto also looked at the ADA/USD 4-hour pair. Based on the chart, Cardano’s bulls capitalized on the support at $0.486. This move was crucial to the way the price pushed past the $0.499 resistance.
With buyers coming back, ADA has a high chance of coming in contact with the $0.55 psychological level. This potential was supported by the Moving Average Convergence Divergence (MACD).
At press time, the MACD was 0.005. This positive reading suggested bullish momentum for the token.
ADA to $0.60? Here are the odds
Likewise, the token’s Awesome Oscillator (AO) had also climbed. It sat at 0.030 at press time, suggesting that ADA’s momentum was increasing.
If ADA breaks and closes above $0.55, it could clear the path to another 10% hike. Should this be the case, one ADA would equal to $0.60.
Source: TradingView
However, rising as high as $0.65 might not be something ADA might achieve in the short term. While this is possible, it would take a lot more than the current buying momentum.
Apart from the technical outlook, AMBCrypto noticed some unusual movements on-chain. This time, the focus was on whales.
By employing Santiment’s data, AMBCrypto noticed that whale transactions worth more than $100,000 have been increasing. Transactions valued at $1 million and more followed the same path.
These movements were a testament to the growing interest large investors have in Cardano. If sustained for some time, it could help ADA’s value surge.
However, this would only occur if these whales were buying the token.
Source: Santiment
Realistic or not, here’s ADA’s market cap in BTC terms
Should this cohort decide to liquidate some holdings, ADA might feel the heat. In a bearish scenario, the token’s price could drop below $0.50.
On the other hand, surging interest with buying pressure could lead ADA’s price above $0.60.
