Cardano (ADA) could embark on a massive rally in the short term as the token looks set to breach the $0.55 resistance level.
Despite ending 2023 on higher grounds, Cardano’s performance this year has been disappointing. The eighth-largest cryptocurrency by market capitalization has lost most of the gains it recorded in Q4 2023.
Data from CryptoRank shows that ADA is down 10% year-to-date (YTD). Not deterred by its underperformance this year, Cardano has shown resilience as it tries to return to its glory days.
Over the past seven days, ADA has recorded an impressive increase of 7.1%, rallying to a weekly high of $0.5659. ADA’s surge coincides with the latest rally in the broader crypto market, with other top assets like BTC and ETH recording substantial gains in the same timeframe.
ADA’s Resistance at $0.55
However, ADA’s latest rally was short-lived, as the token plunged below the $0.55 price level yesterday. In the hours leading up to press time, ADA was changing hands at $0.53, down 3.5% over the past 24 hours.
Interestingly, Cardano is again gearing up to breach the $0.55 resistance level to position it for a potential rally. If it succeeds in flipping the $0.55 resistance, this event could pave the way for a potential rally towards $0.60, $0.70, and the elusive $1 price.
However, failure to achieve this feat could see ADA plunge below $0.5 in the short term. As reported earlier, top analyst Ali Martinez pointed out that ADA could make a bullish move toward $0.68 if it can breach the resistance around $0.54 and $0.56.
Cardano Investors Bullish on ADA Long-Term Prospect
Despite increased volatility in the crypto market, most Cardano investors are bullish on ADA’s future prospects. Notably, on-chain data from IntoTheBlock show that 23% of Cardano investors have held on to their ADA coins for over five years.
These Cardano investors hold a combined 7.085 billion, worth $3.75 billion at the current exchange rate of $0.53. In addition, 19.75% of Cardano investors holding 6.084 billion ADA ($3.22 billion) have not sold their coins within the past six to 12 months.
Furthermore, another 16.74% out of the total Cardano holders have been holding a combined 5.1 billion ADA coins ($3.04 billion) over the last 18 to 24 months.
The data from IntoTheBlock shows that the vast majority of ADA investors are bullish on the coin’s prospects.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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