Cardano has recently experienced a significant breakout from a bullish pennant pattern, leading to optimism regarding a possible 98% price increase. After maintaining stability above the $0.850 support level, Cardano’s price saw an increase of 1.9%, trading at $0.938, which translates to an impressive weekly gain of 7.6%.
Notably, Cardano had faced challenges as it fell below the $1 mark, triggering a bearish sentiment among investors. However, the recent shift toward a bullish trend signals a potential turnaround, suggesting that the price could soar by as much as 98%.
Demand indicators further support this optimistic outlook. The near-term resistance is centered around the psychological $1 level. Achieving this milestone could restore investor confidence significantly, especially considering that 29% of Cardano holders are currently in “out of the money” positions, according to IntoTheBlock data. This situation indicates that selling pressure could be relatively low, providing the chance for a positive price shift.
Moreover, Cardano’s chain has recently showcased a notable increase in its DeFi Total Value Locked (TVL), which surged by 9.08% in just 24 hours, reaching $476.2 million. While this figure remains modest compared to Cardano’s overall market capitalization of $33.2 billion, continued growth in TVL can be a crucial factor in sustaining ADA’s upward price momentum.
The recent breakout from the bullish pennant pattern has placed Cardano on a promising trajectory. Chart analysis indicates that the price target, using the height of the pennant as a reference, stands at $1.858. Achieving this target hinges on ADA maintaining stability above key psychological levels—$1 and $1.50.
Support for this bullish momentum is also evident through increasing trading volume. A rise in trading activity during price uptrends typically signifies growing demand, pointing to investor confidence in the future performance of Cardano.
In summary, with robust indicators and a promising price pattern, Cardano’s price action infers that a significant upside could be on the horizon. As the market reacts and adapts to these developments, investors may want to keep a close watch on the evolving landscape of ADA, as the potential 98% gain adds an exciting twist to their investment journey.
