The News Crypto -
- ADA price increases 7.7% in 24 hours, aligning with broader market trends.
- Short-term holders show reluctance to sell, potentially fueling further gains.
- Technical analysis suggests possible 31% rally to $0.47 if key resistances are broken.
Cardano (ADA) has exhibited notable resilience in recent trading sessions, posting a 7.7% price increase over the past 24 hours. This upward movement aligns with the broader cryptocurrency market’s positive trajectory, catalyzed by the U.S. Federal Reserve’s decision to cut interest rates on Wednesday.
The surge in ADA’s value is further bolstered by an intriguing shift in the behavior of short-term holders, whose reluctance to sell could potentially propel the altcoin towards breaking the crucial $0.47 resistance level.
Data from IntoTheBlock reveals a significant increase in the number of ADA short-term holders – those who have held the coins for less than 30 days – over the past month.
Traditionally dubbed “paper hands” due to their propensity to sell at the first sign of market turbulence, these holders have surprisingly adopted a more bullish stance. Their decision to maintain their positions reflects a gradual but notable shift in market sentiment surrounding Cardano.
Source: IntoTheBlock
Cardano shows optimistic outlook
Technical analysis lends credence to this optimistic outlook, with ADA poised to breach the Leading Span A of its Ichimoku Cloud on the daily chart. This indicator, which tracks price trends, support and resistance levels, and potential market reversals, has served as a formidable resistance point in recent months.
A successful breakout above this level would not only confirm strengthening bullish momentum but also signal increased buying interest and the potential for sustained upward movement.
The Relative Strength Index (RSI) further supports the bullish narrative, currently registering at 51.52 and trending upward. This reading suggests building buying pressure, potentially setting the stage for further price appreciation.
Should ADA successfully breach the Leading Span A, the next target would be the Leading Span B, a more robust resistance level. Overcoming this hurdle could potentially trigger a 31% rally, propelling Cardano towards the $0.47 price target.
This article was originally published on thenewscrypto.com
