What’s behind Cardano’s 14.65% price surge?

[CryptoChamp]

Cardano (ADA) has witnessed a remarkable price rally recently, primarily driven by a favorable interest rate cut. The cryptocurrency surged by 14.65%, igniting optimism among investors about the potential onset of an altseason. Here’s a closer look at Cardano’s price action and what could happen next, including our Cardano price prediction

Here’s a breakdown of Cardano’s price action and what could happen next:

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1. Cardano Breaks Key Resistance Level

• Price movement: Cardano has surged to $0.4078 following a 2.59% intra-day increase.
• Resistance level breached: ADA successfully broke through the crucial $0.40 resistance level, signaling room for further gains in the coming weeks.
• Bullish outlook: With Cardano trading near these key levels, a bullish sentiment persists.

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2. Bullish Indicators Ahead for Q4

• 200-day Simple Moving Average (SMA): Although Cardano is still below the 200-day SMA, long positions are increasing, showing confidence in further price growth.
• Target price: If momentum holds, Cardano could rise to $0.593 in early Q4.
• Whales accumulating: Large holders, or whales, have kept accumulating ADA, contributing to a 10.6% monthly rally. Cardano’s market cap has climbed back above $13 billion.

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3. Key Resistance and Potential Targets

• Resistance at $0.406: Cardano faces a crucial resistance level at $0.406. A breakout above this level could drive prices to $0.55.
• Risk of pullback: If ADA fails to break resistance, prices could fall back to $0.35.

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4. Market Sentiment and On-Chain Data

• Bearish signals: Despite the recent rally, on-chain data from Coinglass indicates a bearish sentiment, with ADA’s Long/Short ratio at 0.93. About 51.63% of traders are holding short positions.
• Neutral interest: Futures Open Interest has remained unchanged, reflecting a cautious stance from traders.

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5. Current Price and Trading Volume

• Recent decline: At the time of writing, Cardano was trading at $0.385, down by 1.4% in the past 24 hours.
• Lower participation: Trading volume has dropped by 35%, suggesting reduced market activity amid bearish sentiment.

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Cardano’s price momentum remains at a critical point. Investors are watching to see if the altcoin can sustain its recent rally or face a potential pullback in the coming days.