Cardano (ADA) has been caught within a firm consolidation phase alongside Bitcoin and most other major altcoins.
Despite forming an incredibly strong market structure over the past several months, ADA has been unable to escape the lackluster market trend that has come about as a result of Bitcoin’s position within the $9,000 region.
Analysts are now explaining that they anticipate the crypto to start forming another leg higher. This advance could turn parabolic if buyers are able to shatter one key resistance level that has formed over the past year.
This movement could also be bolstered by strong underlying fundamentals, which have been seeing notable growth in recent times.
Analyst: Cardano poised to see explosive upswing as it nears key resistance
At the time of writing, Cardano is trading down marginally at its current price of $0.082. This is around the level at which it has been consolidating at over the past few weeks.
Earlier this week, an intense influx of selling pressure forced it down to lows of $0.071. The dip to this level was met with intense buying pressure that subsequently led it up to its current price region.
Despite seeing lackluster price action throughout the past few days, it is important to note that its mid-term strength still remains intact. It is currently trading up significantly from its late-May lows of $0.05 and is only down slightly from recent highs of $0.088.
Analysts are forecasting imminent upside for Cardano, as the gains seen over the past 30 days have led it up to a key resistance against its Bitcoin trading pair.
One pseudonymous analyst who trades under the name “Bagsy” pointed to its current test of this resistance in a recent tweet, explaining that he believes it is “priming up for the next leg” higher after confirming a bullish support-resistance flip.
ADA’s next leg higher could be boosted by strong fundamentals
On-chain data also seems to suggest that Cardano is being driven by strong fundamentals, rather than just investor hype.
Analytics platform IntoTheBlock shows that large ADA transaction volume – meaning transactions worth over $100,000 – has been spiking as of late, seeing a major uptick in early June.
Because it has been caught within an uptrend over this same time period, this seems to suggest that large buyers have been accumulating the cryptocurrency.
Spikes in large tx volume of this magnitude have only been seen on a few occasions throughout the past few years and tend to correlate with uptrends.