Key Insights
- ADA’s price has risen over 11% in the past week and is now trading above $0.82.
- Open Interest in ADA futures has also hit $1.44 billion in a show of strong market demand.
- So far, the whales and momentum indicators show that there could be more gains to come in the next few weeks.
Cardano (ADA) is grabbing headlines once again because of its strong performance over the last week.
The cryptocurrency is trading above $0.82, and is now up by more than 11% from the previous week’s lows.
Derivatives data even shows that traders are becoming more bullish. For example, Open Interest in ADA futures has risen to $1.44 billion, which is the highest level since late July.
A lingering question is whether ADA will hit $5 soon?
Technical Indicators Show Bullishness For ADA
This week, on August 3, ADA found solid support around $0.70. Since then, it has rallied nearly 15% and is holding above $0.82.
This would mean that if the cryptocurrency closes above $0.84 on a daily chart, it has a good chance of testing its July 21 high of $0.93.
The Relative Strength Index (RSI) is currently at 61, which shows that the bulls are currently in control of things.
Additionally, the Moving Average Convergence Divergence (MACD) has shown a bullish crossover.
This is historically a common buy signal that tends to come before the start of an uptrend.
When looking at things from a longer perspective, ADA recently experienced a “golden cross” between the 50-day and 100-day Simple Moving Averages.
This is another popular bullish indicator as the weekly MACD crossed above the zero line.
Summed up, ADA seems to be well set up for further bullishness.
Whales Increase ADA Holdings
Whale ADA holders also appear to be actively involved, as they are actively buying. Wallets holding between 100 million and 1 billion ADA have bought around 200 million coins in the past two days alone. This has brought their total holdings to around 3.72 billion coins.
Another interesting part of this is that the buying is happening at the same time when Open Interest in ADA derivatives has surged from around $238 million in November to over $1.4 billion today.
Summed up, there has been a great deal of conviction for ADA holders as of late.
Analyst Predictions for ADA in 2025
Some market analysts have massively bullish predictions for Cardano over the next few months. For example, Dan Gambardello and Ali, both well-known crypto analysts, believe ADA could rally as much as 10x during the “altseason”.
Ali, in particular, based his analyses on similarities between the current price of Cardano and its structure in the last bull cycle.
If ADA follows this pattern, the analyst believes that ADA could see a possible price target between $5 and $10 before the next major market correction.
This means that at XRP’s current market cap of $193 billion, ADA would trade at about $5.36.
Other predictions show that ADA could climb by as much as 150% over the next year, on support from network upgrades, including the upcoming Midnight Upgrade.
ADA Price Levels to Watch
Traders are now watching two major price levels closely. For starters, a break and daily close above $0.84 would open the door to $0.93 and possibly $1 in the near term.
This means that on the downside, a failure to break resistance could see ADA pull back to the $0.77 support zone.
The said price level aligns with the 61.8% Fibonacci retracement level from its recent rally.
If Cardano’s attempt to break above the $0.84 price level is successful, it could climb past the $1 level and hit as high as $1.33 in the short term.
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