The cryptocurrency market has certainly struggled to find its footing so far this year. Amid ongoing recession worries and geopolitical conflict, a turnaround could be stirring for the sector. Indeed, as Cardano has dropped 15% over the last month, experts are still optimistic that a surge back to $1 is still possible. But what’s been stopping that dream from becoming a reality lately? The answer is complicated, however, analysts point to several factors behind the bearish phase.
At press time, Cardano’s ADA cryptocurrency was trading around $0.62. The coin is borderline break-even in price over the past week, falling less than 1%. In the past month, however, ADA is down 15%. It should, however, be noted that ADA saw a nearly 10% rise during the second week of April. This took the altcoin from a low of $0.54 to its current high. How did ADA spark this breakout last week, and what could send Cardano’s coin further?
According to cryptocurrency analyst Ali Martinez, whales have reportedly offloaded more than 100 million ADA in the past week. This is usually considered bearish as whales are usually large investors. Therefore, they have a sluggish impact on the market, sending ADA and other coins down.
What Could Send ADA Higher?
On the other hand, Cardano’s Open Interest suggests that ADA might witness a rebound soon in the crypto space. Per CoinGlass data, as of Friday, 986.66 million ADA have been committed to Open Interest by investors trading ADA futures. This volume represents $611.47 million at the current market value of ADA. This indicates that ADA holders were betting on the asset’s rebound in the coming days. This upcoming week could prove instrumental for how Cardano’s coin surges or deflates, especially with $1 on the horizon.
Moreover, Cardano ADA has seen an ascending triangle on its price chart. That could be key in orchestrating an increase to the next resistance at $0.73. That is supported by experts being increasingly bullish on its yearly outlook. Crypto price prediction platform CoinCodex predicts the asset could retake the $0.77 mark by April’s end. If it doesn’t, it should be steady for the next four months. Indeed, they project ADA will jump more than 54% to reach a $0.94 price by August.
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Following this summer, the Fall season could see the first time ADA returns to $1 since early March. Should ADA reclaim $0.73 and breach $0.80 soon, that timeline could be accelerated.
