- ADA formed a descending channel, suggesting an end to its decline.
- The price might hit $0.68 if buyers in the spot and futures market become aggressive simultaneously.
If things go as predicted, Cardano [ADA] holders might have something to cheer about. This was because Crypto analyst Ali Martinez noted that the price might hit $0.68 soon. In his post, Martines mentioned that ADA had formed a descending triangle on the daily chart.
A descending triangle is a technical pattern characterized by a decreasing upper trendline and a second flatter horizontal trendline which is lower than the first. This pattern usually marks the end of a downtrend.
ADA needs to maintain $0.53 before the jump
After the downtrend ends, the cryptocurrency involved might consolidate for a while before a series of higher highs appear. Martinez, however, noted that Cardano has to close above $0.53 to validate the bullish thesis.
#Cardano shows signs of a descending triangle formation on its daily chart. A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68! pic.twitter.com/DoizuVPiRI
— Ali (@ali_charts) February 8, 2024
At press time, ADA’s price was $0.52 thanks to an amazing 10% increase in the last 24 hours.
With this performance, the Cardano had the most outstanding performance out of the top 10 cryptocurrencies. For example, Binance Coin [BNB] rose by 4.04% and Solana [SOL] climbed 6.70% but no other altcoin came close to a double-digit increase like ADA did.
Despite the price increase, Cardano’s Social Dominance dropped to 0.596%. In connection with the price action, the Social Dominance can tell when a value is close to the bottom or top. If the Social Dominance had spiked, then ADA would have been close to its local top.
Since the metric declined, it implied that ADA’s price has the potential to jump even more. Interestingly, this forecast aligned with the abovementioned analyst’s take.
Furthermore, AMBCrypto observed that Cardano’s volume had been skyrocketing. On the 7th of February, ADA’s volume was 269.25 million.
Source: Santiment
Buyers look ready for an invasion
However, the volume at press time had increased to 599.29 million, marking an incredible increase within a day. Should the volume continue to increase alongside the price, ADA might make that 32% increase to $0.68.
In addition, traders might need to watch out for the Cumulative Value Delta (CVD).
Using data from Coinalyze, AMBCrypto noticed that the aggregated spot CVD was negative. If the CVD is positive, it means buyers are aggressive. Therefore, the negative CVD here suggests that aggressive sellers were present.
For ADA to make it to $0.68, buyers have to take that aggression from sellers. In the meantime, the Open Interest (OI) seemed to be backing Cardano’s price increase.
Read Cardano’s [ADA] Price Prediction 2024-2025
At press time, the OI had increased significantly. The increase suggests that buyers’ net positioning was more aggressive than the sell side.
Source: Coinalyze
But that was for the derivatives market. If ADA aims to rise by 32% in the short term, buyers in the spot market need to show a similar level of aggression as their future market counterparts.
