Cardano price staged a strong comeback and flipped a crucial resistance point at $0.851 as the crypto market rally gained steam. The ADA token jumped to a high of $0.861, up by over 70% from its lowest level in June this year.
Cardano Price Technical Analysis Points to More Upside
The daily timeframe explains why the Cardano price has staged a strong bull run this month. This chart shows that the token formed a double-bottom point at $0.512, its lowest point in April and June this year.
The ADA price has jumped above the neckline at $0.851, its highest swing point since May 12 this year. Most notably, the token has moved above the top of the trading range of the Murrey Math Lines.
Cardano is also about to form a golden cross pattern, which happens when the 50-day and 200-day moving averages are about to cross each other. This cross is one of the most common bullish continuation signs.
The Relative Strength Index (RSI) and the MACD indicators have continued to soar, with the former reaching the overbought point of 81.
Therefore, the most likely scenario is that the Cardano price continues to soar, with the next target price being $1.2. This target is identified by measuring the distance between the neckline and the double-bottom, and then extrapolating the same distance from the neckline.
ADA Price Chart: Source: TradingView
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NIGHT Airdrop is Cardano’s Catalyst
Cardano price has numerous catalysts that may push it higher in the coming weeks. First, there will be the Midnight airdrop, where Cardano holders will receive NIGHT tokens.
Midnight will be the first Cardano sidechain or layer-2 network. It will be based on the zero-knowledge (ZK) proofs, which are known for their privacy features.
There will be 24 billion NIGHT tokens, with 12 billion going to Cardano holders. The rest of them will be distributed to holders of tokens such as Bitcoin, XRP, Ethereum, Avalanche, and Basic Attention Token (BAT).
Second, ADA price will benefit from the ongoing surge in futures open interest, which is a sign of robust demand. This interest jumped to over $1.6 billion, much higher than the year-to-date low of $596 million. Soaring open interest is a sign of higher demand for the coin.
Third, there are rising odds that the Securities and Exchange Commission (SEC) will approve the spot ADA ETF by Grayscale later this year. It will also approve the Tuttle Capital Leveraged Cardano ETF, which may lead to more gains.
Most importantly, there are signs that the crypto market rally will continue in the coming months. If this happens, Cardano, one of the most popular altcoins, will be one of the best performers.
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