Cardano (ADA) at $0.60: Strong Institutional Interest and Bullish Chart Patterns Suggest Further Upside

• The Mean Dollar Invested Age (MDIA) and on-chain metrics show increased Cardano (ADA) circulation and renewed interest.
• DA’s current technical indicators show bullish momentum, including a breakout from a descending triangle and resistance at $0.70, $0.81, and $0.95 levels.

The Cardano price has reported an impressive gain of 81% in a week. Hence, at this moment, ADA stands as the second-best performing among the top 10 currencies. The rally started on November 6 and appreciated ADA from $0.33 to reach as high as $0.62.

Cardano Price Analysis: Bullish Indicators

Several indicators show the bulls may not be done yet. The most important one is the Mean Dollar Invested Age (MDIA) metric for ADA which shows the circulation of tokens. When this number drops, people usually regard it as a sign that the coin is gaining renewed interest and liquidity. So, as long as MDIA keeps falling, the Cardano price appreciation could continue. 

Also, it’s essential to look at IntoTheBlock’s In/Out of Money Around Price model, which categorizes the holders according to the price when the ADA was acquired. IOMAP data currently reflects a concentration of support for ADA at $0.59 with approximately 87,950 addresses holding about 1.79 billion ADA tokens at this price.

It’s way above that in the range of $0.61 to $0.69 and may reveal strong support right below the current price. Thus, ADA price is likely to face minimal resistance if it breaks through the $0.70 level with more gains incoming. Technical indicators are also bullish. 

ADA price recently broke out of a descending triangle formation on the weekly chart—a pattern generally considered bearish. It’s a descending triangle that features an uptrend line sloping up and a flat trendline positioned down below. However, ADA’s upward break above the upper trendline of the triangle foreshadows a long rally, reported CNF. 

Moreover, Cardano’s whale activity has soared according to IntoTheBlock. Large Cardano investors have traded over 28.45 billion ADA valued at $14.9 billion within the last 24 hours. At large, whale inflow into whales has surged 393% in the last seven days, whereas the 90-day inflow increased by an astonishing 2,855.

Courtesy: IntoTheBlock

Market dynamics show several reasons for ADA’s sudden growth. First, the recent Bitcoin rally increased its price by 10.8% to $89,547 and in effect increased ADA and other altcoins’ prices.

Second, Cardano’s founder, Charles Hoskinson, was recently involved in a U.S. crypto policy discussion, reported CNF. It raised speculations regarding the ADA’s possible integration into government-level projects.

ADA Price to $1?

ADA now sits within a bigger rising channel and in a continuation pattern, hinting at further upside. The main point of resistance of ADA is at the $0.70 level, which parallels the Fibonacci retracement level of 0.786. If it breaks past this point, there’s a resistance at $0.81 and finally at $0.95. A breakout here means the Cardano price could surge beyond $1. Also, $0.50 is a good support as it serves as a cushion if bears start selling.

Market indicators are still mixed but look promising. Thus, the 24-hour trading volume is down by as much as 48%, which might be interpreted in terms of profit-taking. This co-integrates with ADA’s Relative Strength Index (RSI) at 76; suggesting an overbought condition.