Cardano could hit a new yearly high before end of 2023
The past month has seen Cardano (ADA) experience a substantial rally, mirroring the broader crypto market‘s momentum.
The catalyst behind this surge stems in part from Bitcoin’s (BTC) lead in the rally, fueled by mounting expectations that US regulators are on the brink of approving a spot BTC exchange-traded fund (ETF).
Additionally, the price rise was also boosted by the Cardano Summit 2023, a prominent crypto event that took place from November 2 to 4, as well as the recent announcement by Cardano founder Charles Hoskinson, in which he revealed plans to move towards a fully decentralized governance structure.
This positive sentiment has injected a fresh wave of optimism into the market, propelling ADA to a crucial demand area. According to a prominent analyst, maintaining this position could pave the way for further gains, potentially toward yearly highs for the popular altcoin.
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Well-known crypto expert Ali Martinez said Cardano currently sits in the $0.37 – $0.38 range, which represents the token’s key demand zone.
In this price range, 166,470 crypto wallets bought 4.88 billion ADA. Given weak resistance and strong support beneath it, upholding this area would allow the token to hit new yearly highs, said Martinez in his X post on November 27.
“With minimal resistance ahead and solid support below, remaining above this zone could pave the way for $ADA to climb to new yearly highs.”
– Martinez wrote.
On the flip side, losing this support could “trigger a brief correction to $0.34,” he added.
Currently, more than 70% of wallets that purchased Cardano in the price range of $0.32 to $0.44 are ‘in the money’ – meaning their investments are profitable. Meanwhile, around 26% of these positions are unprofitable, while 3.8% are sitting at a breakeven point.
In addition, pseudonymous cryptocurrency analyst CoinsKid said last week that “Cardano could be gearing up for a MASSIVE move to $0.7497 and $1.80 eventually” – two price points that represent two “key areas of untapped resistance,” he explained.
ADA price analysis
ADA is currently trading at $0.38, down 2.8% in the past 24 hours.
The crypto token lost around 3.3% across the last week, but its monthly performance sits at +34%, wit the altcoin adding $3.2 billion to its market cap during this 30-day period.
Looking ahead, algorithms powered by artificial intelligence (AI) technology expect ADA to continue its recent uptrend. Notably, algorithms utilized at the crypto analytics platform CoinCodex estimate the cryptocurrency to hit $0.86 in the next three months, implying a potential upside of more than 125%.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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