Cardano ($ADA) is showing strong bullish signals on its charts, with lead analyst @DanGambardello highlighting a classic breakout pattern. The cryptocurrency has broken through channel resistance at $0.5787 and is now targeting $1.00, supported by increasing volume and a MACD crossover. This positive outlook is further bolstered by recent ecosystem developments, including the Ouroboros Phalanx upgrade and a significant surge in transaction volume.
Technical Analysis and Price Targets
LeadTheBits founder @DanGambardello shared a chart on TradingView indicating a textbook bullish setup for Cardano. The chart shows ascending trendlines from 2024 lows and a descending wedge signaling an imminent upward breakout. The price action is supported by increasing green volume bars and a consolidation support box.
Following a recent 12% pullback from October highs, ADA found support around $0.52. The Relative Strength Index (RSI) dipped to 35 before rebounding to 52. Currently trading at $0.5787, ADA has seen a 2.3% increase on significant volume. The breakout is characterized by candles closing above resistance, a positive shift in the MACD histogram, and a potential measured move to $1.00, representing a 73% upside based on the wedge's height projected from the channel.
Ecosystem Growth and On-Chain Activity
Cardano's technical strength is complemented by a robust on-chain performance. The latest development report highlights significant ecosystem activity, with transaction volume reaching 114.56 million. The number of active Decentralized Reputation Providers (DReps) has increased, and staking rewards distributed year-to-date have surpassed $2.8 billion.
The recent Ouroboros Phalanx upgrade, implemented in late September, is designed to reduce attack costs by 30% and enhance transaction throughput. Data from DeFiLlama indicates a stable Decentralized Finance (DeFi) Total Value Locked (TVL) of $350 million, with ongoing tests for the Hydra scaling solution aiming for one million transactions per second (TPS).
Market Sentiment and Future Outlook
On-chain data from Santiment shows that large holders, or whales, have acquired 300 million ADA from exchanges following the recent dip. Institutional interest is also on the rise, with Grayscale's ADA trust seeing a 15% increase in inflows.
Despite some criticisms regarding velocity compared to other networks like Solana, and a recent minor dip attributed to broader market fluctuations, Cardano's outlook remains positive. With indications of a softening stance from the Federal Reserve and favorable policy shifts for cryptocurrencies, historical chart patterns suggest a high probability of success for similar wedge breakouts on ADA. @DanGambardello's chart serves as a key indicator of sustained support and building momentum.
In the current altcoin season, with Bitcoin dominance at 53%, ADA is positioned to potentially reclaim the $1 mark by the end of the fourth quarter. The narrative suggests a methodical approach to growth rather than rapid surges, making ADA an attractive option for patient investors. Traders are advised to monitor the channel expansion for potential opportunities.