Will Cardano (ADA) price continue its double-bottom breakout rally with a successful retest as buyers target $1.2915?
With a bullish recovery in the crypto market, altcoins are surging rapidly, but Cardano is struggling to gain momentum. After a sideways shift following the $1 psychological mark, Cardano maintains a market cap of $36.35 billion.
Cardano Price Analysis
On the 4-hour chart, Cardano’s price trend shows a double-bottom breakout. The neckline broke at $1.02, with a peak at $1.0893.
However, due to the massive overhead supply, Cardano’s price is back to retest the broken neckline. The ADA token trades at a market price of $1.0340, with a slight intraday pullback. This current price follows the recovery from a $0.8775 dip, representing a 17.85% gain.
Notably, the bullish recovery has led to a positive crossover of the 20-EMA line with the 50, 100, and 200 EMAs, helping restore the bullish alignment of the exponential moving averages.
Furthermore, the 4-hour RSI is now above the halfway mark, indicating strong bullish demand. As a result, technical indicators are signaling a buy as Cardano enters the retest phase.
Whales Maintain ADA Buying Spree
During the recovery rally, whale support for Cardano has significantly increased. According to recent tweets from Ali Martinez, Cardano whales have purchased over 130 million ADA tokens in the past 72 hours.
This includes 30 million ADA tokens in the last 24 hours and 100 million ADA tokens in the preceding 48 hours. This surge reflects a growing demand for Cardano within the whale community, suggesting a bullish outlook.
Whales bought an additional 30 million #Cardano $ADA in the last 24 hours! pic.twitter.com/c8h7ZkFKGH
— Ali (@ali_charts) January 16, 2025
ADA Price Targets
Based on the Fibonacci levels, the 78.6% Fibonacci level breakout will determine the bullish journey. The upcoming price target for Cardano remains at the $1.13 peak and the $1.20 psychological mark.
However, with the hype around Trump’s swearing-in ceremony on January 20, Cardano could reach the 1.618 Fibonacci level at $1.2915.
On the flip side, the crucial support remains at the $1.00 psychological mark, followed by the $0.9765.
DisClamier: 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 opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
