In a remarkable turn of events, Cardano’s price has surged by 20%, trading around the critical support levels of $0.70 to $0.80. This price movement comes as traders closely monitor the token’s trajectory, eager to see if it can solidify its recovery or will face further downward pressure in the coming days.
Recent developments in the Cardano ecosystem have added fuel to this price rebound. Notably, eToro has launched Cardano staking for U.S. customers, opening the door for over 40 million retail investors to earn rewards on their ADA holdings. This new staking option is expected to reduce the circulating supply of ADA, as users lock up their tokens for potential rewards.
Moreover, whale wallets have been notably active, accumulating approximately 200 million ADA, valued at around $140 million, in just a 48-hour window following a brief market downturn. Data from Santiment reveals that wallets holding over 1 billion ADA increased their balances from 1.50 billion to 1.59 billion tokens between October 12 and October 14. This accumulation indicates a growing confidence among large investors, even as overall selling pressure in the market has dropped by 51%.
On-chain metrics support this bullish sentiment. The Spent Coins Age Band metric, which tracks the movement of ADA across various wallet age groups, has decreased significantly, suggesting a reduction in selling activity. This decline from 179.06 million tokens to 87.33 million tokens illustrates that fewer coins are being transferred or sold across the network, signaling a potential shift in market dynamics.
Technical Analysis and Price Targets
As Cardano’s price seeks to establish a firm foothold, technical analysts are identifying key resistance levels to watch. Currently, the $0.86 mark emerges as a significant hurdle. Should ADA manage to break through this level, bullish targets could extend to $1.01 and $1.12. The price action is supported by an ascending channel pattern on higher timeframes, with the token finding support near $0.61 before bouncing back towards $0.73.
Analyst Jesse Peralta highlights that if momentum continues, logical targets lie between $0.82 and $0.85. The Ichimoku Cloud indicator also indicates that ADA is pressing against short-term resistance, with the Tenkan-Sen and Kijun-Sen lines converging, suggesting a potential test of these price levels in the near future.
While analysts note the importance of maintaining support above $0.61, they caution that losing this level could lead to deeper declines. The interaction with channel boundaries will provide essential structure for traders as they navigate the market.
At the time of writing, Cardano is trading around $0.80, reflecting a modest 0.39% increase over the past 24 hours. Despite a slight decline of 1.29% over the previous week and 0.05% for the month, the overall trend appears to be one of gradual recovery.
Market observers have described Cardano as potentially undervalued, especially considering the ongoing development activity within its ecosystem. The blockchain continues to witness the emergence of new decentralized applications and maintains a robust developer community, reinforcing its long-term growth potential.
As eToro’s staking service takes off and whale accumulation continues, the future of Cardano looks increasingly promising. With the $0.75 to $0.80 zone serving as a crucial reference point for market participants, analysts suggest that holding this area could pave the way for higher price levels later this year.
