Will the Cardano (ADA) price bounce back to $1 as bulls prepare for a symmetrical triangle breakout rally?
Amid the growing uncertainty in the crypto market, Cardano holds the fort at a $0.70 psychological mark. With the ongoing recovery over the past few hours, Cardano is preparing for a breakout rally.
However, the recent whale activity warns of a potential drawdown. Will the whale activity nullify the chances of a breakout rally in Cardano? Let’s find out.
Cardano Recovery Signals Potential Breakout Run to $1
In the 4-hour price chart, the Cardano price trend showcases a symmetrical triangle pattern. This pattern currently holds the Cardano price trend and the trend momentum.
Cardano is the ADA price trend that reveals a positive cycle within the triangle pattern with three consecutive bullish candles. This forms a triple white soldier pattern, generally considered a bullish start to a new rally.
With the recovery run, Cardano has marked a closing price above the 23.60% Fibonacci level at $0.7201. Currently, Cardano trades at $0.7246 with an intraday recovery of 2.82%.
Supporting the chances of a breakout rally, the MACD and Signal lines are on the verge of giving a positive crossover. This is in alignment with the 4-hour RSI line rising to the halfway level.
This reflects a sudden weakness in the bearish momentum and increases the breakout chances.
Analyst Points Out 100 Million ADA Sell-Off
Amid the growing chances of a breakout rally, early margin as a crypto analyst highlights an exodus of whales selling Cardano amid increased volatility. The analyst highlights a downfall in the ADA tokens held by whales.
Whales are cashing out! Over 100 million #Cardano $ADA sold in the past week. pic.twitter.com/aPhasDy3aD
— Ali (@ali_charts) March 16, 2025
Based on the data from Santiment, the current holding of ADA by whales is down at 5.89 billion, which marks a 100 million sell-off in the past week. As whales continue to offload ADA in the market, the increased supply is likely to limit the chances of a breakout rally.
Cardano Price Targets
Based on the Fibonacci level, if Cardano manages to undermine the recent supply surge, the breakout rally could reach the 78.60% Fibonacci level at the $1 psychological mark. On the flip side, the crucial support remains at $0.65 and $0.60.
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