In the past week, Cardano (ADA) has soared nearly 80%, making it the second-best performer among the top 10 cryptocurrencies. The altcoin’s rapid climb has sparked excitement, with many speculating a return to its 2021 peak levels.
Cardano’s Impressive Rally
Cardano’s rally began on November 6, shortly after indicators suggested a Donald Trump win in the U.S. election. ADA’s price surged from $0.33 to $0.62 in just seven days, before pulling back slightly to $0.60.
Despite this dip, on-chain data suggests the rally may not be over. Data from IntoTheBlock shows a spike in the Average Transaction Size, now at $171,588. This increase indicates more involvement from institutional investors rather than retail traders. Historically, when large players enter the market, it often signals further price gains.
Bullish On-Chain Indicators
Another key indicator, the Mean Dollar Invested Age (MDIA), points to continued bullish momentum. The MDIA measures the average age of investments in a cryptocurrency. A decrease in this metric suggests that older ADA coins are returning to circulation, signaling increased network activity.
Historically, when the MDIA falls, it often precedes a price rally. If this trend continues, Cardano could retest the $0.62 mark and potentially climb higher.
Price Prediction: Short-Term and Long-Term Targets
The In/Out of Money Around Price (IOMAP) indicator highlights strong support for Cardano at $0.59, where nearly 1.79 billion ADA were purchased by 87,950 addresses. This suggests that the current support is stronger than the resistance between $0.61 and $0.69, making a move to $0.70 highly possible in the short term.
From a technical analysis perspective, Cardano has broken out of a descending triangle on the weekly chart. This bullish breakout could signal a significant uptrend. If the rally continues, analysts predict a possible 127% increase, pushing ADA’s price to $1.34 in the coming months.
Risks to Watch
While the outlook is bullish, there are risks. If selling pressure intensifies before reaching key targets, ADA’s price may reverse. Traders should watch support levels and be prepared for potential pullbacks.
