Cardano (ADA) Price Prediction: Breakout Run to Target $1.67 before Year-End

by

As a seasoned analyst with over a decade of experience in the crypto market, I find myself intrigued by the current state of Cardano (ADA). The altcoin segment is experiencing a surge, and Cardano seems to be at a pivotal point.

With Bitcoin‘s price approaching $108,000, there’s been an increase in buying interest for altcoins. The overall crypto market cap, not including Bitcoin and Ethereum, has seen a growth of 1.73% over the last 24 hours, currently standing at around $1.08 trillion.

With its favorable altcoin climate, Cardano (ADA) currently finds itself at a pivotal juncture where optimistic sentiments are on the rise. The question remains: Will Cardano reach a fresh 52-week high before the end of 2024?

Cardano Breakout Targets $1.67

On the two-hour price graph, the trajectory of Cardano’s price suggests a persistent resistance line that it has been trying to break for some time. Notably, Cardano’s price has encountered significant support at approximately $1.054.

In simpler terms, this significant area lines up with the 38.20% Fibonacci ratio. At present, the Cardano price movement inside the triangle shape suggests there might be an impending double-bottom reversal.

Additionally, the diagonal movement inside the triangle shape signifies a period of consolidation. The 38.20% and 50% Fibonacci levels, at approximately $1.054 and $1.101 respectively, serve as the upper and lower boundaries. Consequently, when Cardano breaks out of this triangle, it suggests that the cryptocurrency will surpass its current range.

The price rally seems to be testing the resistance trendline in reverse, suggesting a potential bullish breakthrough. Meanwhile, the two-hour Relative Strength Index (RSI) line exhibits a bullish divergence inside the triangle formation, backing up this recovery movement.

Cardano Network Activity Overview

Over the past few months, specifically since November, I’ve noticed a significant increase in large transactions on our network. This number has tripled, moving from approximately 3,320 transactions to the current 10,200 transactions. However, more recently, we’ve seen a pullback that has caused the transaction count to dip from its peak of 21,970. This suggests a temporary slowdown in network activity.

To clarify, the number of transactions involving ADA tokens fell from its peak of 49.99 billion on December 1st to 216.25 billion on December 16th. This substantial decrease suggests a weakened state of the network’s activity levels.

Daily Active Addresses Nears 50k

Although there’s been more instability in network transactions recently, we’re seeing a rise in daily active addresses. Approaching the 50,000 mark for active addresses, this trend comes after a dip to around 5,510 transactions just a short while ago.

This indicates that the user base of Cardano may regain strength as part of a wider market rebound.

Conclusion

As I watch Bitcoin inch towards its $110,000 milestone, it seems that the temporary dip in Cardano is nearing an end. With a noticeable uptick in bullish momentum, I anticipate that this descending triangle breakout will lead to a fresh 52-week high in Cardano’s price chart.

As the upward trajectory in Cardano tests the 50% Fibonacci mark, coinciding with the resistance trendline, if there’s a robust close above that resistance line, it’s projected that the price of Cardano could potentially rise to its previous high of $1.327.

According to Fibonacci ratios, the ongoing bullish trend might extend to either $1.46 or $1.67, corresponding to the 1.272 and 1.618 Fibonacci levels respectively. This technical analysis, combined with Cardano network’s recovery, suggests a possibility that the ADA token price could climb up to $1.67 by the end of December.

On the flip side, the crucial support levels for Cardano are $1 and $0.94.

Read More

2024-12-17 15:18