Key Insights
Cardano’s price has just broken out of a multi-month bull flag pattern and is showing signs of a possible push for 100 - 150% gains.
Long-term holders have been keeping a record 15 billion ADA unmoved for over a year.
Retail interest in Cardano has been on the rise amid talks of an “altcoin season.”
Cardano has recently entered what analysts believe could be a powerful bullish phase. According to market expert Clifton Fx, the ADA token has broken out from a multi-month bull flag pattern on the three-day chart.
This pattern often comes before a strong continuation in price, and current patterns in the charts show that the cryptocurrency could be headed towards 100%-150% gains in the next few weeks.
One of the most encouraging signs for Cardano is the rising number of long-term holders. Data from TapTools shows that 15 billion ADA have remained unmoved for over a year.
This is the largest amount in Cardano’s history, and it indicates that selling pressure is in decline, especially as the market enters what some are calling “altcoin season.”
The steadiness of the long-term holders indicates that they have a high level of conviction. In the past, similar patterns have come before strong rallies in the altcoin market, especially when combined with a rise in retail interest.
Retail traders are once again turning their attention to Cardano. According to data from Google Trends, searches for “Cardano” have reached their highest point in five months.
Searches for Altcoin and Cardano have been on the rise | Google Trends
On the other hand, interest in the term “altcoin” is now at its highest since 2021. This increase in search activity shows that buying pressure is now strong from smaller investors.
Historically, spikes in retail interest have always come alongside strong capital flows from Bitcoin into altcoins. This was clear during the ICO boom and the DeFi and NFT surge between 2018 and 2021. The current trend could create the same kind of price movement for ADA.
Some traders, like popular analyst Trader_Jibon, believe that ADA could reclaim its November peak of $1.32 in the near term. More than this, the mid-2022 high of $1.63 is another major target.
If ADA can break through these resistance levels, it could further validate the bullish forecast.
The breakout from the bull flag pattern has placed Cardano on many traders’ watchlists. Technical traders are now watching the $1 mark, which is considered a psychological level that could trigger a market rally for the cryptocurrency.
While many indicators are pointing towards a strong rally, analysts are warning that predictions like these are never certain. Factors like macroeconomic conditions, U.S. regulatory decisions and general market sentiment will likely push or pull ADA’s actual performance.
Overall, in the short term, the major factors to watch include Cardano’s ability to hold above $1. Others include the continuation of retail interest and how strong long-term holders can be in terms of conviction.
If these conditions continue to be favourable, the predicted 150% rally could become a reality very soon.
For now, Cardano is still one of the top altcoins to watch as technical factors continue to align. In all, whether it reaches the upper end of analysts’ predictions will depend on how the market reacts over the next few weeks.
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