Is a Cardano ‘Boom’ About to Begin? Why ADA Price Could Rally Soon

Cardano (ADA) is positioned for a potential price rally as technical indicators and market sentiment align.

Cardano (ADA) is poised for a potential price rally as technical indicators and market sentiment align, setting the stage for a possible ‘boom’ in the market.

Expert analyst LuckSide Crypto, known for his deep insights into market trends, highlighted several factors driving ADA’s movement. These include key resistance levels, Bitcoin’s influence, and the changing role of institutional activity.

ADA’s Key Resistance and Market Structure

Cardano is currently at a critical juncture, testing the $0.68 resistance after bouncing off a key trendline. A breakout above this level could send ADA quickly to the $0.72-$0.74 range, a zone that’s acted as both support and resistance lately.

Bitcoin’s movements will likely influence ADA’s path forward. BTC recently closed above its 200-day moving average, a positive sign for market confidence, and is close to reclaiming its 20-week moving average. If Bitcoin completes this recovery, it could boost sentiment across the crypto market, including Cardano.

While the Fear & Greed Index shows extreme fear, the analyst questions if this fear is genuine. Retail investors haven’t been selling off, but institutions appear to be accumulating. The expert suggests big players are manipulating market sentiment to buy at lower prices before the next upward move.

“They’re not here for the tech, they’re here to make money,” the analyst noted, explaining how major investors strategically accumulate positions before market movements.

Stablecoin Dominance as a Market Indicator

One of the most reliable indicators of potential market movements is USDT dominance. The analyst referenced past cycles, noting that stablecoin dominance peaks often precede crypto rallies.

On March 14, 2024, USDT dominance peaked before a market surge. Similarly, in October 2023, a decline in stablecoin dominance signaled the start of a bull market.

Currently, USDT dominance is struggling to stay above 5%, indicating that significant capital has yet to exit stablecoins. The analyst stressed that once USDT dominance starts falling, the crypto market could experience a major price surge.

Catalysts That Could Trigger an ADA Price Rally

A few major occurrences could accelerate a market-wide surge. Inflation expectations may be impacted by the next Personal Consumption Expenditures report, according to the analyst.

Furthermore, Charles Hoskinson, the founder of Cardano, may reveal fresh advancements for ADA at his planned meeting. Other factors, such as FTX asset distributions and regulatory clarity, could further influence the market.

The expert concluded that the most critical factor to watch remains USDT dominance. “We’re waiting for USDT dominance to confirm the trend the other way—when that happens, it’s game on,” the analyst stated. With ADA and BTC positioned near critical levels, market participants are closely monitoring signals that could indicate a breakout.

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This article was originally published in TokenPost and written by LuckSide Crypto.