- ADA surges in four days, breaking above Ichimoku Cloud’s Leading Span B.
- On-Balance-Volume reaches 42.47 billion amid 371% increase in holding time.
- Price targets: potential surge to $0.81, or drop to $0.27 if support fails.
Cardano (ADA) finds itself at a pivotal juncture after weeks of range-bound trading between $0.31 and $0.36. Recent market activity suggests a significant shift in sentiment, with mounting buying pressure potentially setting the stage for a breakout from this consolidation phase.
Currently trading at $0.35, ADA has demonstrated impressive strength with a 10% price increase over four days.
This movement has pushed the cryptocurrency above the Ichimoku Cloud’s Leading Span B, a significant technical development suggesting growing bullish momentum.
The potential conversion of this level from resistance to support could establish a foundation for further gains.
Cardano’s OBV climbs to be bullish
Supporting this bullish narrative, Cardano’s On-Balance-Volume (OBV) has climbed to 42.47 billion, marking a 1% increase over the past four days. This metric’s positive trajectory, coupled with price appreciation, provides technical validation for the current uptrend.
The synchronization between rising OBV and price action typically indicates sustainable buying pressure.
Source: IntoTheBlock
IntoTheBlock data reveals a remarkable 371% increase in holding time over the past week, suggesting growing investor confidence in ADA’s long-term prospects.
This dramatic surge in average holding duration often signals an accumulation phase, with investors positioning themselves for anticipated price appreciation.
Looking ahead, a successful breach of the Ichimoku Cloud’s Leading Span A could establish the cloud as crucial support, potentially catalyzing moves toward higher resistance levels.
The immediate target lies at $0.39, with a breakthrough potentially opening the path to $0.47, a four-month high. Should this momentum persist, ADA could target its 2024 peak of $0.81, representing a 68% surge from current levels.
However, market participants must remain vigilant to potential downside risks. A failure to maintain momentum above the Ichimoku Cloud could trigger a retracement to $0.31, with further weakness potentially testing the $0.27 support level.
