Cardano (ADA) surges over 10%, eyeing a breakout past $0.80 as analysts predict a major rally with higher liquidity.

ADA sees strong trading volumes and bullish technical indicators, potentially pushing towards $1 if it clears key resistance.

Cardano (ADA) had a blazing hot start to Thursday, surging more than 10% as analysts predicted a major rally for the altcoin with higher liquidity.

After a strong run-up, Cardano is now trading at $0.7957, having risen by more than 10% in the past day. Analysts are now closely watching if ADA can break out of the descending channel on the 4-hour timeframe. A breakout could propel ADA towards $0.80.

Analyst Predicts Breakout Towards $0.80 As Key Condition Is Met

Analyst Ali Martinez predicts that ADA could breakout towards the $0.80 mark. For that to happen, a key condition needs to be met.

“ADA looks poised for a breakout toward $0.80. But first, it needs to clear the upper boundary resistance of this channel,” he said.

He adds that Cardano is showing strong trading volumes, with a 101% increase in the past day, pushing total trading volume to $1.7 billion. A breakout above the $0.85 resistance could pave the way for further gains towards $1.

However, to maintain the bullish trend, it’s crucial to keep an eye on ADA making higher highs and the Relative Strength Index (RSI) remaining in overbought territory.

"If either of these conditions is violated, it could indicate a potential shift in momentum," he said.

Analyst: Altcoin Market Yet To Begin As More Money And Liquidity Come In

Meanwhile, analyst Dan Gambardello notes that the altcoin market hasn’t fully started yet. According to him, more money and liquidity are coming in, which will be crucial for altcoins to take off.

He said that right now, Cardano is in a good spot with its risk model in the 30s. This has historically been a sign of major price jumps.

“We’re testing the 200-week moving average, which could be a key level to watch. If Cardano manages to stay above this level, it could be a sign that the bull market is still going strong.”

He predicts that if we see another leg down in Bitcoin and the price drops below $22,000, it could put a damper on the altcoin season. However, if Bitcoin can hold above that level and we continue to see good trading volume, then we might finally see the start of the altcoin market.