Cardano Price Forecast as ADA Overtakes Dogecoin in Market Capitalization – Are Whales Buying?

The bullish outlook for ADA, the primary token in the Cardano ecosystem, continues to climb to new ranks, toppling Dogecoin (DOGE) to become the world’s seventh-largest cryptocurrency.

ADA boasts $14 billion in market capitalization, slightly above the meme coin’s $13.6 billion. Dogecoin price rallied by more than 30% on Tuesday after users on Twitter realized their home buttons were no longer the blue bird logo, but a dog meme.

The move comes after the microblogging company, under the leadership of Elon Musk, began implementing changes to the platform’s verification process.

Users on Twitter no longer need to wait for legacy verification, instead, the company now offers the blue check mark icon as a subscription service for both individual and corporate accounts.

The news and speculations surrounding Twitter’s home button change saw Dogecoin price skyrocket, reaching highs slightly above $0.1, although the meme coin has already given back some of the gains to trade at $0.0985 on Wednesday.

Cardano Price Flaunts 48% Move

Cardano price has remained relatively unchanged in the last 24 hours, but a bullish trend appears to be building momentum on the daily timeframe chart. After holding support at $0.3 in early March, the smart contracts token embarked on another aggressive attack, which weakened the seller congestion at $0.35.

Bulls continued with this offensive attack toward the end of March and the beginning of April and now ADA dodders at $0.398. The 200-day Exponential Moving Average (EMA) (line in purple) is currently the stumbling block between Cardano price and an anticipated breakout to $0.6.

The optimistic outlook for ADA is well grounded on the daily chart and bolstered by the formation of an inverse head and shoulders (H&S). This pattern is similar to the typical H&S, which is a trend reversal formation, except this time it is printed upside down on the chart.

After the first valley (shoulder) forms, it is succeeded by an even deeper valley (head) and then followed by another higher valley (shoulder), as shown on the chart. Often, the inverse head and shoulders appears after an extended downtrend in the price of an asset.

Investors trading this pattern must be patient, such that they only activate their long entry orders slightly above the dotted neckline, with a target equal to the distance between the head and the neckline extrapolated from the breakout point.

For that reason, a break and hold above the 200-day EMA and subsequently the inverse H&S pattern could blast Cardano price 48% higher to $0.6, a price level seen last in June.

The path with the least resistance is bound to remain to the upside as more buyers are expected to stream into the market as ADA establishes its position above $0.4. Furthermore, the Moving Average Convergence Divergence (MACD) indicator dons a buy signal on the same daily chart.

If the MACD line in blue holds above the signal line in red, buyers are likely to keep their long positions in ADA intact. Notice the momentum indicator above the mean line with its upside-facing direction likely to keep steadily climbing.

Cardano Unlocks Gaming Support with Paima Studios

Users on the Cardano blockchain will no longer need to look elsewhere for their gaming needs now that the network is collaborating with Paima Studios to bring forth blockchain-based games.

According to an announcement by Paima Studios, a layer 2 onchain gaming platform on Tuesday, users will not need to send their tokens to other networks. Cardano has designed the bridge in a way that lowers the vulnerabilities associated with bridging tokens between blockchains.

Cardano’s integration with Paima Studios is non-custodial, in other words, tokens stay in the custody of the users, in their own wallets, and will not need to make transfers to the games’ wallets. The collaboration also lays the groundwork for games on other networks to seamlessly launch or migrate to the Cardano blockchain.

Buy Cardano Now.

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