The native cryptocurrency of the Cardano blockchain ($ADA) has recently seen its price rise by around 4% over the past week as it starts to recover from a slump that saw it lose over 30% of its value year-to-date. The cryptocurrency, according to a popular analyst, could surge over 70% in the “coming days.”
The popular pseudonymous cryptocurrency analyst Captain Faibik has notably recently said that the cryptocurrency has broken out of a falling wedge pattern after a long period of consolidation and is now set to surge to around $0.7 per token.
A falling wedge is a pattern that occurs when the price of a security has been falling over some time amid a downward move, in which trend lines drawn from its highs and lows can converge as the drop loses momentum.
Another investors, World of Charts, seemingly also spotted the pattern on Cardano’s price chart and suggested the cryptocurrency appears to be “preparing for a solid bullish rally” that could take it to the $0.8 mark in the near future.
As reported, short sellers have been increasing their bets against both ADA and the native token of the XRP Ledger ($XRP) in a potential positive development for poatenti long-term investors as liquidated shorts can help propel these cryptocurrencies’ prices.
That’s according to on-chain analytics firm Santiment, which noted in a post on the microblogging platform X (formerly known as Twitter) that funding rates on cryptocurrency exchange Binance indicate a dominance of short positions over longs since September 2023 for ADA and May 2024 for XRP.
Another popular cryptocurrency analyst, Fiery Trading, recently publish a Cardano price prediction suggesting it could skyrocket to $40 per token as “there’s a possibility of ADA going for the top of the channel in the coming bull-cycle.”
Featured image via Unsplash.
