Bitcoin is rebounding and Cardano (ADA) is aiming for new targets

Following Bitcoin’s (BTC) recent uptrend, the market’s leading altcoins are now focused on new targets. Bitcoin’s price has hit new all-time highs in the past three months, peaking at $73,777 in March. Nevertheless, post-halving historical data suggests that we may be in for even higher highs.

Analysis of Cardano (ADA)

The activities of the large Cardano (ADA) whales are often considered an important signal for major market movements. This group of investors identifies details often overlooked by individual investors and prepares for future price movements. The advantage of on-chain data is that it allows us to see which direction professional, experienced investors are leaning. This is a key advantage of blockchain-based assets, as all information is available transparently.

Addresses holding between 1 million and 10 million ADA coins have amassed a total of 50 million coins worth $30.3 million and have been quite eager over the past 10 days. The total accumulation of this whales group has increased to 5.79 billion cardano coins, and they also believe that another big rally will begin after the halving.

ADA coin price prediction

Let’s first look at the second major signal supporting the upside, but let’s also consider the downside risk. For altcoins, it is often difficult to predict whether they will definitively rise or fall, given the ever-present downside risk. However, at this point, the difference in daily average addresses (DAA) points to a major sell signal.

The DAA deviation analyzes the current price in relation to the number of daily active addresses, and the larger the difference becomes, the stronger the expectation of a downtrend. Interestingly, the price of Cardano is rising while the number of daily active addresses is falling. Despite this, there have been cases where the price of ADA coins has shown short-lived spikes even when this signal occurs.

Cardano’s price is currently poised to rally after a breakout. Technical analysis on the chart indicates that a falling wedge formation is preparing to break, potentially leading to a 32% upside. If ADA Coin experiences the expected breakout, its price could quickly rise to $0.813.

However, should a downward move occur as feared (or be caused by upcoming US inflation news), ADA Coin’s price could fall back to $0.5. However, at the moment, the price continues its day with an estimated increase of 5%.