ADA’s price may see a spike: Will its $0.45 prediction come true?
- Institutional investors are showing interest in ADA.
- ADA’s price may reach $0.45 in the short term.
The last three months have proven to be crucial for Cardano [ADA], and the coming ones may even be more instrumental. This is because a lot of transactions worth over $100,000 have been rampant on the network.
According to Ali Martinez, an analyst, the surge in transactions means that there has been an increase in institutional interest in ADA.
Martinez, in his post, also noted that whales have also been involved while stressing the potential impact on ADA’s price. The analyst mentioned that moves like this could be vital to a substantial increase in ADA’s price.
— Ali (@ali_charts) December 4, 2023
ADA eyes $0.45 as its next move
So, it was not surprising that ADA’s 90-day performance showcased a whopping 59.48% increase. But can the token do much more than this? To have an idea of this potential, AMBCrypto considered the technical state of ADA.
At press time, the ADA/USD 4-hour chart was in a solid bullish state. Looking at the Auto Fibonacci Extension, we noticed that the 0.786 Fib level might serve as support for the Cardano native token. The 0.786 Fib level was around $0.388.
So, if ADA reverses from the uptrend, it might not drop below this level. Another Fib Extension level considered was 4.236. From the chart examined, the 4.236 level was at $0.457.
This is one region ADA can hit if the large transactions continue and buying pressure reigns.
However, market players need to be cautious when opening long ADA positions. This is because the Relative Strength Index (RSI) was 75.78, indicating that the altcoin was overbought. So, ADA may retrace.
Should ADA’s price drop, the support at $0.388 could drive it back upward.
A reversal is possible
If intense buying momentum does appear at this level, then ADA may rise into the $0.45 region. With further respect to the price, AMBCrypto checked out the liquidation levels provided by Hyblock Capital.
Liquidation levels are estimated price levels with high risks of liquidation. The chart shared below shows that Cardano may head in the $0.42 direction.
This is because of the cluster of liquidity at that point, making it a magnetic zone for the cryptocurrency.
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An assessment of the Cumulative Liquidation Level Delta (CLLD) revealed that the metric was at a very positive level. This could cause a full retracement.
Thus, it is likely that ADA’s price will drop to $0.38 in the short term. However, this reversal may only last a short while. If the sentiment around ADA remains bullish, the next target for the cryptocurrency might be around $0.45.