Cardano (ADA) was today and touched $1.28. The cryptocurrency had its biggest 24-hour gain in the last month, which boosted its market capitalization to $44.7 billion. Now, investors have begun talking about whether this momentum can be sustained, or if the rally has just been a temporary burst.
Cardano has in value over the past month, capturing the attention of bulls. Experts are keenly observing the token as optimism about the broader crypto market grows.
Bullish Predictions Fuel Market Hopes
Crypto analyst Javon Marks thinks ADA has more to go. On December 1, Marks presented a price target of $2.77, or 130% above its current value. He also suggested that ADA could go the same way as it did in 2021 and surge between $5.29 and $7.82. Lark Davis, another prominent analyst, went even further and predicted that ADA would jump by 747% to $10.
(Cardano) continuing to display monumental strength here and can be in full pursuit towards the first target of $2.7709 which can result in another +135% move from here to reach it but history says there can be more 👀!
See charts below…
— JAVON⚡️MARKS (@JavonTM1)
Institutional support is further giving the bull case credibility. The CIO at Morgan Creek Capital, Mark Yusko, recently stated that Cardano was one of his top altcoin choices for 2024. According to Yusko, traditional banks will be forced to introduce cryptocurrencies like ADA in the future to maintain their status quo.
Resistance & Support Levels Under Focus
While the rally is exciting, technical analysts suggest caution. The altcoin recently failed to break past the resistance level of $1.15, which raises questions about whether the uptrend can hold. Analysts point out that ADA must decisively reclaim this resistance to sustain its bullish momentum.
If ADA succeeds in breaking through and holding up above $1.15, it could open a fresh wave of buying to carry the price even higher. If it fails, there could be a pullback to some critical support levels around $0.88.
Broader Market Trends Could Boost ADA
Cardano is just seeing its surge as the overall crypto market is filled with fresh momentum. Bitcoin is approaching $100,000 and the recently held US presidential election brings much-needed optimism for the introduction of friendlier policies to cryptos. The positive context will therefore become a tailwind for ADA and other altcoins.
Meanwhile, Cardano plans to release 18.53 million ADA tokens on December 4, which are worth approximately $20 million, adding to its momentum. An increase in supply can be viewed as dilution; however, the funds will go towards staking and treasury reserves, which may boost long-term growth.
At present, Cardano seems to be on the bright side of things, but the future depends on breaking some key resistance levels and holding investor confidence.
Featured image from VOI, chart from TradingView