TL;DR
- ADA’s latest uptrend caught the eye of analysts, one of whom thinks the price may soar to $1 if it surpasses an important resistance level.
- A massive transfer of almost 70 million ADA from Coinbase to an unknown wallet raised speculations about a big whale move, but the rising RSI hints at a potential pullback in the short term.
Is It Time for $1?
Cardano’s native token has followed the overall resurgence of the cryptocurrency sector in the past several weeks. It pumped to as high as $0.85 on May 12 before retracing to the current $0.78 (per CoinGecko’s data), which represents a 30% increase on a monthly scale.
According to the popular X user Ali Martinez, ADA has the potential to hit the psychological mark of $1. The X user believes that to do so, the price must first break above the resistance level of $0.81.
It is worth mentioning that the last time ADA traded above $1 was at the beginning of March. Back then, US President Donald Trump revealed that his administration would move forward with establishing a strategic crypto reserve that would include Cardano’s cryptocurrency (among other leading digital assets). Soon after, though, he signed the executive order, which excluded ADA as it was solely focused on bitcoin.
Martinez isn’t the only market observer envisioning additional gains for the asset in the future. Earlier this week, the X user Henry claimed to have explored numerous cryptocurrencies to determine which ones are the “gems with 100x potential.”
They included ADA in the prestigious list, describing it as the ocean: “calm, deep, and misunderstood.” Henry also argued that the token was “built to last,” predicting a surge to $3 later this year.
Observing Some Indicators
The X account with over 2.7 million followers – Whale Alert – recently informed that almost 70 million ADA (worth more than $52 million) were transferred from Coinbase to an unknown wallet.
Such actions are generally bullish since they indicate a shift from centralized platforms toward self-custody methods and reduce the immediate selling pressure. However, since there were no actual details on the transfer, it could mean that it was an internal Coinbase shuffling.
On the other hand, ADA’s Relative Strength Index (RSI) has spiked to almost 60 on a daily scale. The momentum oscillator measures the speed and magnitude of the latest price changes to help traders identify possible bullish or bearish divergences. It varies from 0 to 100, and readings above 70 typically indicate that the asset has entered overbought territory and could be poised for correction.
The post Cardano’s Road to $1: Key Factors for ADA’s Success appeared first on CryptoPotato.