The post Here’s why analysts are turning bullish on ADA appeared on BitcoinEthereumNews.com.

Cardano (ADA) is gearing up for a potential breakout as renewed optimism in the market propels the asset toward critical resistance levels. Currently trading at $0.84, ADA has broken out of a bullish pennant pattern, with price action approaching a decisive point, as highlighted by analyst Av_Sebastian in a recent X post dated November 20. Technical analysis: Key levels and patterns According to the analysis, Cardano’s breakout from a bullish pennant pattern indicates strong upward momentum, driven by rising trading volume and an RSI nearing overbought levels. Cardano price analysis chart. Source: Av_Sebastian/TradingView The next critical resistance lies at $0.91, aligning with the measured move projected from the breakout pattern. Should the rally persist, $0.85 may flip from resistance to support, further solidifying ADA’s bullish stance. On the downside, $0.70 now acts as a significant support level after being flipped from resistance, with additional cushions at $0.80 and $0.65. These levels provide a roadmap for potential retracements or further gains, highlighting ADA’s bullish trajectory. Whale accumulation boosts confidence Adding to the bullish sentiment, Cardano whales have significantly increased their accumulation, showcasing growing confidence in the asset’s long-term potential. Analyst Ali Martinez recently shared data from IntoTheBlock, revealing that wallets holding over $10 million worth of ADA have expanded their positions by an impressive 145.72%, now accounting for $12.11 billion. Similarly, mid-sized wallets holding between $1 million and $10 million have grown by 82.97%, reaching $3.9 billion, while smaller institutional wallets in the $100,000 to $1 million range saw a 105.66% increase, totaling $4.36 billion.  In sharp contrast, smaller holders have reduced their positions, signaling a shift in ADA’s supply toward larger investors. This consolidation underscores rising institutional confidence and a robust outlook for Cardano’s future growth. Derivatives market shows strong bullish sentiment Data from CoinGlass highlights a surge in ADA…

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Filed under: News - @ November 20, 2024 3:25 pm