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Despite the fact that the $ADA coin has been trading below the $1 price level for the last 3 years, analysts have observed a very high bullish factor in Cardano’s technical setup.

Cardano is a popular Proof-of-Stake (PoS) blockchain network founded by Charles Hoskinson. Hoskinson is the CEO of Cardano’s developer firm Input Output Hong Kong Global (IOG). The Cardano project team always remains engaged in high development activities to push the adoption of blockchain technology in real-world use cases, rather than creating hype like other top flagship crypto projects.

At the time of publication of this report, the trade price of Cardano’s native token $ADA is $0.387, which is 6.5% higher over the last 24-hour period. Notably, the trade price of this token surged by a net 16% in the last 7 days.

The rapidly surging price of this cryptocurrency has grabbed the attention of top analysts, who are investigating why this pump is taking place and what factors are supporting it.

On 24 Sep 2024, TradingShot on TradingView noted that $ADA has triggered one of the most powerful buy signals on its weekly time frame, targeting price levels around $5.

Analysts noted that Cardano’s one-week Logarithmic Moving Average Convergence Divergence (1W LMACD) has formed a bullish cross for the first time since October 2023. This signal marks a significant shift for $ADA coin, suggesting that a major upward move could be on the verge.

Analysts also noted that the cryptocurrency’s one-week Relative Strength Index (RSI) has been ranging, further indicating that the market has been in a period of accumulation. As the RSI has remained relatively neutral, it shows the potential for $ADA to break into a new rally once buying momentum picks up.

The crypto expert believes that Cardano could start its new parabolic rally and may hit a maximum of $5 price as a strong target for the current bull cycle top.

On the same day, another crypto analyst, World Of Charts, shared his analysis of the ADA price in an X tweet post and noted that the ADA coin is breaking out from a descending channel, a move that has been anticipated for some time.

The analyst noted that Cardano’s native token is currently going through key resistance levels. The next target appears to be $1, as the price has shown strong momentum and upward potential.