Cardano Sharks circle ahead of potentially bullish breakout

Cardano continues to consolidate within a tight price range that narrows over time. The eighth largest cryptocurrency now looks ready for a significant price movement after enduring a long period of stagnation.

Cardano is gaining momentum

Cardano seems to be gaining momentum for a significant price movement as medium-sized holders increase their positions.

Data from Santiment reveals a significant increase in buying pressure behind Cardano despite the stagnant price action. The chain-based, social and economic analysis firm confirmed that addresses with between 10,000 and 100,000 ADA have entered an accumulation phase, adding more than 79 million tokens to their positions in the last month. These medium-sized holders, often referred to as “sharks”, currently account for over 10% of all ADA holdings. Meanwhile, “whales”, which have between 100,000 and 10 million ADA, have stopped selling tokens.

The sudden increase in buying pressure could have a positive effect on Cardano’s price. The ADA seems to be consolidating within a descending triangle on the daily chart. As prices move closer to the top of the pattern, the odds of an explosive price movement increase.

Further upward pressure could help Cardano overcome the $ 0.50 resistance level and trigger a bullish breakout. Based on the height of the triangle apex, ADA can increase strength by up to 52% against a target of $ 0.70.

Cardano needs to stay above the $ 0.43 support level to have a chance to print higher peaks. Not staying above such a crucial price point can be seen as a sign of weakness, which encourages investors to sell their holdings. Should this happen, the ADA could fall to $ 0.38, or even go as low as $ 0.24 if the downtrend continues.

This pessimistic task coincides with Peter Brandt’s assessment of Cardano’s price action. The trade veteran maintains that the ADA must rise above the June 16 high of $ 0.55 to avoid the “very definition” of an “ugly” view.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.