Cardano (ADA) showed strong resilience on Sunday, trading firmly despite difficulties that saw the ninth-largest crypto asset lose around 9% in the past week.
This drop was driven by a significant sell-off by whales, with prominent crypto analyst Ali Martinez noting that over the past 48 hours, whales had offloaded more than 70 million ADA.
Despite the sell-off, ADA’s price showed strength, holding ground in the past 24 hours to reach $0.9 at press time. This movement followed a period of consolidation, with ADA finding robust support around the $0.85 level last week. The cryptocurrency bounced off this support, setting the stage for a potential bullish breakout.
Analysts are now watching this support zone closely, with some believing it could act as a catalyst for higher price movements in the near future.
In a video earlier this week, analyst “Investing Broz” discussed ADA’s bullish potential, addressing doubts surrounding ADA in a video and emphasizing that the project is far from dead. Notably, the pundit stressed that the current price action is just a “small blip” and reassured followers that “we’re early” in Cardano’s price growth.
“People are saying ADA is dead, but we’re just getting started. This is the kind of market where the price is still finding its feet, but the long-term potential is undeniable,” he said.
The pundit further expressed strong optimism regarding ADA’s future price trajectory, suggesting that the token could replicate the bull run seen in 2021. He pointed out that ADA’s recent dip in December to a low of $0.76 might have marked the bottom.
“Back in March 2020, ADA dropped even lower, and many believed it was the worst investment. Yet, those same people watched as ADA skyrocketed from $0.018 to over $3—a 163x increase. Guess what? We could be at that same early stage right now,” he remarked.
Elsewhere, analyst Alan Santana recently expressed optimism about Cardano’s (ADA) bullish prospects, noting that the recent retracement still maintains a higher low, indicating a potential upward trend continuation. In a tweet, he emphasized that ADA remains bullish above $0.76, and a new rally seems likely with its current price above $0.83.
Additionally, analysts like Ali Martinez have previously pointed to the ADA chart forming a bullish “bull flag” pattern, suggesting a breakout could push prices above $1.87, potentially reaching as high as $6.
Beyond technical indicators, there is growing optimism about a potentially favorable regulatory environment for cryptocurrency under *****. The upcoming Plomin hard fork, set for this month, is also expected to enhance decentralization on the Cardano network.
Additionally, the recent launch of Binance’s ADA Earn staking program will likely increase demand from the exchange’s vast user base, potentially boosting ADA’s price.