A chart analysis reveals a Cup and Handle pattern for Cardano (ADA), projecting an incoming 12X price surge.
Cardano has exhibited notable price fluctuations over the past 24 hours, ranging between $0.70 and $0.74. In that time, ADA gained 1.7% in the last hour and 1.8% over the past day.
However, the weekly trend shows a 21.6% decline, indicating a recent correction. Despite this, the token has posted an 8.1% gain over the past 14 days and a 5.9% increase over the past month, showing resilience in the broader trend.
Chart Analysis Suggesting Potential Breakout
Following this recovery, analysts are weighing in on the next moves for Cardano. A chart shared by CryptoElites highlights a “Cup and Handle” pattern in ADA’s price movement, forecasting a potential 12-fold price breakout once resistance is breached.
The “Cup” forms as the price declines, consolidates at the bottom, and begins to recover. The “Handle” appears as a smaller pullback before an expected surge. A breakout from this pattern typically signals strong upward momentum.
The analyst suggests that ADA’s key breakout resistance lies at $3.23. If the price surpasses this level, the next target would be around $6.45, based on the 1.272 Fibonacci extension. The ultimate price projection, should bullish momentum persist, is $9.33, in line with the 1.414 Fibonacci extension. In total, the analyst expects Cardano to see a 12X price surge.
Could Cardano Reach $10?
Meanwhile, another analyst pointed to further bullish patterns. Dan Gambardello presented a chart featuring a curved dotted line, suggesting a possible parabolic trend. If ADA follows this path, it could result in a significant breakout to $10. The chart also included a moving average, which often signals bullish momentum when prices rise above it.
At the time of the analysis, the Relative Strength Index (RSI) showed values between 50 and 60, reflecting increasing buying momentum. An upward trend in RSI suggests growing strength in the market, which could push ADA toward overbought levels.
On-Chain Metrics and Whale Accumulation
Elsewhere, crypto analyst Ali Martinez reported on March 11 that whales had accumulated 180 million ADA tokens in the previous week. This increased their total holdings to 6 billion tokens for wallets containing 1 million to 10 million ADA. Continued accumulation by large investors strengthens the case for a potential price recovery.
Additionally, Cardano network activity has shown a resurgence. On-chain data reveals a 4.79% increase in new addresses over seven days.
Active addresses have risen by 11.99%, while zero-balance addresses have grown by 12.26%. These metrics indicate heightened user engagement, which often correlates with upward price momentum.
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.
