Bitcoin News Today: Cardano (ADA) Surges 10% in 24 Hours Amid Altcoin Rally

Cardano (ADA) has experienced a significant price surge over the past 24 hours, with an increase of 6.55%. This upward momentum has positioned ADA near a local resistance level of $0.8254 on the hourly chart. The cryptocurrency has shown impressive gains, with a 10% jump in the past 24 hours, reaching an intraday high of $0.825. This marks its highest price level in weeks, indicating strong bullish sentiment among investors. The price movement has been particularly notable, with ADA appreciating by over 25% from last week's low, currently hovering around the $0.73 mark. This surge has been driven by a broader altcoin rally, with many alternative cryptocurrencies experiencing similar gains.

The recent price action of Cardano (ADA) has been closely tied to the performance of Bitcoin (BTC). If Cardano continues to follow Bitcoin's upward trajectory, there is potential for ADA to return to the $3 level. Currently, Cardano is trading at $0.75, reflecting a 24% increase. This correlation suggests that as Bitcoin continues to rally, Cardano could benefit from the positive market sentiment, potentially leading to further price appreciation.

Despite the positive price action, there are concerns about the sustainability of Cardano's recent gains. On-chain analysis indicates that high-profile holders have sold over 170 million ADA tokens, which could exert downward pressure on the price. However, Cardano has managed to absorb this selling activity relatively well, with a 3.3% daily increase at press time. The cryptocurrency's volume has declined by 14.8% over the last 24 hours, suggesting that a retest of the $0.71 support level might be imminent.

On the hourly chart, the rate of ADA is near the local resistance of $0.8254. As most of the ATR has passed, there are low chances of seeing sharp moves by tomorrow. However, if the daily bar closes near the mentioned mark, one may expect a test of the $0.85 zone shortly. On the longer time frame, the price is on its way to the resistance of $0.8466. However, buyers might need time to accumulate energy for a breakout. Thus, the volume has dropped, which means sideways trading in the range of $0.78-$0.82 is the most likely scenario until the end of the week. A similar picture can be seen on the weekly chart. Traders should pay attention to the $0.8466 resistance. If the bar closes above it with no long wick, an ongoing upward move to the $0.90 mark is the most likely scenario.

Analysts have varying opinions on Cardano's mid to long-term prospects. Some experts predict that ADA could jump above $1 in the coming weeks, driven by bullish market sentiment and technical indicators. However, given Cardano's already substantial market capitalization, other analysts suggest that untapped projects with lower valuations could offer better returns on investment. The potential for Cardano to reach $1 by August 1, as forecasted by an AI price prediction model, implies a potential upside of 3.21% from current levels. This forecast, however, should be taken with caution, as it is based on an AI model's prediction and not guaranteed to materialize.

In summary, Cardano (ADA) has shown strong price performance over the past 24 hours, driven by a broader altcoin rally and positive market sentiment. While there are concerns about the sustainability of these gains, analysts remain optimistic about Cardano's mid to long-term prospects. The cryptocurrency's correlation with Bitcoin suggests that further price appreciation is possible, but investors should be mindful of potential selling pressure from high-profile holders.