Why is Cardano (ADA) Price Up Today?

NOIDA (CoinChapter.com)— Cardano’s ADA token finally responded to the bullish sentiment in the wider crypto market. A slew of ‘I love crypto‘ speeches from various political figures and prominent crypto personalities was likely the reason why Cardano prices are up today.

However, despite the slight uptrend and some bullish cues, ADA price continues to struggle against the bearish pressure. Additionally, the Bitcoin 2024 conference’s positive cues have likely played a role in ADA’s recent recovery.

The broader optimism in the cryptocurrency market, spurred by bullish sentiments and announcements at the conference, has contributed to ADA’s price increase.

Bullish Cues Favoring Cardano Price

The recent uptrend in ADA’s price can be attributed to a combination of market dynamics and broader crypto sentiment.

The accumulation by large holders, as shown in the increased holdings of wallets containing 100,000,000 to 1,000,000,000 ADA, underscores strong investor confidence in Cardano’s long-term potential.

Open interest-weighted metrics further support the outlook, which, despite some short-term fluctuations, remains largely positive. This indicates a market with a generally optimistic outlook, where traders are willing to take positions expecting future gains.

The declining open interest in ADA futures, while initially suggesting reduced speculative activity, has stabilized, potentially indicating a consolidation phase. This stability sets a foundation for future upward movements as market participants consolidate their positions.

In addition to these internal market dynamics, external factors have also played a significant role.

The SEC’s recent filing to amend its complaint against Binance, which includes a proposal to no longer seek a ruling on the status of certain tokens as securities, has eased regulatory concerns.

If accepted, this proposal could reduce the regulatory pressure on ADA and other affected tokens. Hence, the news could help introduce a more favorable market environment.

A Bullish Setup Could Be Why Cardano Price Is Up Today

Meanwhile, the ADA USD pair continued moving inside a bullish technical pattern called the ‘falling wedge.’

A falling wedge pattern features a pair of converging trend lines connecting lower highs and lower lows, forming a narrowing shape that slopes downward.

The pattern typically suggests that an asset’s price, while consolidating in a downtrend, is losing bearish momentum and preparing for a potential reversal to the upside. Typically, a breakout occurs in the direction of the overall trend, which, for a falling wedge, is upward.

However, the token faces stiff resistance from the confluence of the 20-week (red), 50-week (purple), 100-week (blue), and 200-week (green) EMA trendlines near $0.49. The SEC news could be the wind that would allow Cardano to unfurl its sails and start a bull run.

To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.

An accompanying increase in trading volume can further confirm the reliability of the breakout. Higher volume during the breakout suggests stronger market conviction.

According to technical analysis rules, ADA price could rally over 170% to reach the pattern’s theoretical price target near $1.1.

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