- Institutional investors are showing interest in ADA.
- The price of ADA could reach $0.45 in the short term.
The past three months have proven to be crucial for… Cardano [ADA], and the ones to come could be even more instrumental. This is because many transactions worth more than €100,000 take place on the network.
According to analyst Ali Martinez, the increase in transactions means there is an increase in institutional interest in ADA.
Martinez also noted in his post that whales are also involved, while highlighting the potential impact on ADA’s price. The analyst said such moves could be key to a substantial increase in ADA’s price.
#Cardano | There has been a significant increase in numbers over the past three months $ADA trades over $100,000, consistently reaching new highs.
This increase indicates a growing interest in #ADA from institutional players and whales, which is usually a precursor to price spikes. pic.twitter.com/APczM2PGxM
— Ali (@ali_charts) December 4, 2023
ADA sees $0.45 as the next move
So it wasn’t surprising that ADA’s 90-day performance showed a whopping 59.48% increase. But can the token do much more than this? To get an idea of this potential, AMBCrypto looked at the technical state of ADA.
At the time of writing, the ADA/USD 4-hour chart was in a solid bullish state. Looking at the Auto Fibonacci extension, we noticed that the Fib level of 0.786 could serve as support for the native Cardano token. The Fib level of 0.786 was around $0.388.
So if the ADA reverses from the uptrend, it may not fall below this level. Another Fib extension level considered was 4,236. The chart examined showed that the 4,236 level was at $0.457.
This is a region that could hit ADA if large transactions continue and buying pressure continues.
However, market players must be carefully when opening long ADA positions. This is because the Relative Strength Index (RSI) was 75.78, indicating that the altcoin was overbought. So ADA can come back.
Should ADA’s price fall, the support at $0.388 could push it back upwards.
Source: TradingView
A reversal is possible
If intense buying momentum occurs at this level, the ADA could rise to the $0.45 region. Regarding price, AMBCrypto has the liquidation levels offered by Hyblock Capital.
Liquidation levels are estimated price levels with high liquidation risk. The chart below shows that Cardano may be headed towards $0.42.
This is due to the cluster of liquidity at that time, making it a magnetic zone for the cryptocurrency.
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An assessment of the Cumulative Liquidation Level Delta (CLLD) found the metric to be at a very positive level. This could cause a complete retracement.
Source: HyblockCapital
So it is likely that the price of ADA will fall to $0.38 in the short term. However, this change can only be short-lived. If sentiment around ADA remains bullish, the next target for the cryptocurrency could be around $0.45.