Cardano rises 140%: Here’s why $1 could be a catalyst for FOMO and an ATH

• Cardano bulls remained resilient despite HODLer pressure, aiming for $1.
• If successful, FOMO is likely to sustain the rally, supported by several other factors.

Cardano [ADA] has emerged as a standout performer in this bull cycle, surging by an impressive 140% over the past month to $0.862. This notable price increase has positioned it among the top 10 gainers in the last 30 days, outpacing many of its rivals in the market.

Now, as the market shifts in favor of altcoins, with Bitcoin nearing a ‘high-risk’ price range, some may interpret Cardano’s nearly 10% daily gain as a potential sign of overvaluation, warranting caution for short-term investors.

However, according to AMBCrypto, in order to avoid a potential correction, targeting $1 is critical for ADA. Reaching this key psychological level could deter weak hands from selling, while sparking renewed FOMO among new investors.

If the bulls succeed, ADA could soon set its sights on achieving a new all-time high.

Cardano is mirroring the 2021 cycle 

Interestingly, Cardano has made remarkable strides in this post-election cycle, highlighted by its impressive three-digit monthly surge.

Notably, ADA has shattered the $0.70 resistance level – a barrier not crossed in nearly eight months – underscoring its strong market performance.

Unsurprisingly, Cardano has become a standout beneficiary of Bitcoin’s rapid rally toward $100K, capturing investor interest as an attractive alternative. 

As a result, approximately 210K addresses that purchased ADA at $0.70, collectively holding around 4.12 billion coins, are now in net profit. This suggests their acquisition cost is significantly below ADA’s current market value.

Source : IntoTheBlock

Specifically, the current price reflects a 22% increase compared to the level when these addresses accumulated their holdings.

However, from a psychological perspective, the likelihood of stakeholders offloading for gains seems low. Cardano is resembling a cycle seen over three years ago when it reached an all-time high of over $3.

At that time, despite bearish pullbacks and erratic daily price movement, the bulls stayed determined, pushing ADA above the $1 mark. This acted as a catalyst for a parabolic run toward $2, suggesting that a similar pattern could unfold in the current market.

So, is $1 on the horizon?

Two days ago, a significant net outflow of approximately $68 million was transferred from large HODLer wallets to exchanges. However, this did not lead to any major price movement. In fact, Cardano remained resilient, experiencing a nearly 3% surge the following day.

Source : IntoTheBlock

Though many of these outflows were later counterbalanced by a similar amount of withdrawals observed the next day, the event highlighted ADA’s growing appeal among investors.

This suggests that a potential accumulation phase is underway, with investors absorbing the selling pressure and setting ADA up for the $1 target next.

Psychologically, holders in net profit are likely motivated to maintain their positions in hopes of larger returns, reinforcing AMBCrypto’s earlier hypothesis.

External factors cannot be overlooked

In addition to discouraging weak hands from selling, a $1 price point for Cardano could spark FOMO in the market, particularly as Bitcoin holders exit after locking in gains.

While a near-term correction may unfold as Bitcoin faces downward pressure, altcoins like Cardano appear poised to capitalize on this shift.

The reasoning is clear: with Bitcoin expected to consolidate before reaching $100K, investors are likely to redirect their attention to high-cap tokens unless BTC draws renewed interest from new buyers who see the current price as a potential market bottom.

Read Cardano’s [ADA] Price Prediction 2024–2025

Moreover, if history is any guide, a parabolic run for Bitcoin often disrupts the entire crypto market. Once BTC hits $100K, altcoins like Cardano are likely to experience a similar capital shift, though on a smaller scale, as Bitcoin will likely dominate the spotlight.

However, given the current market dynamics, with holders incentivized to hold and accumulate while BTC consolidates below its set target, Cardano seems poised to hit $1 in the coming days.