Cardano Price Prediction: ADA Rises 3% Amid Rising On-Chain Activity as Bulls Target $0.51

Highlights:

• The Cardano price has risen 3% to $0.45 as the daily trading volume soars 18%.
• The on-chain data and derivatives information suggest potential upside as whales accumulate ADA tokens. 
• The technical outlook shows bullish technical indicators as bulls target $0.51.

Cardano (ADA) price is showing signs of expansion, rising to $0.45, marking a 3.7% surge in the past 24 hours. Notably, the daily trading volume has increased 18% reflecting rising confidence and network activity. An increasing accumulation among holders and enhanced derivatives are positive signs indicating a bullish mood, as ADA will make a possible fight to the next key resistance.

The Supply Distribution Santiment data is evidence of a bullish future for Cardano, since wallets belonging to some whales are filling up with ADA tokens. The metric shows that whales with 10 million to 100 million ADA tokens (blue line) have gained 160 million tokens since 2 December. Over the same time, 90 million more tokens have been lost in wallets containing 1 million to 10 million ADA tokens (yellow line).

This indicates that there was a possibility that the second group of whales might have been victims of the capitulation event. On the other hand, the other whales took advantage of the occasion and amassed Cardano at a discount.

Besides the accumulation of the holders, Coinglass OI-Weighted Funding Rate statistics demonstrate a bullish picture. Fewer traders bet that the Cardano price will fall further than those who bet that it will rise.

The metric has turned positive and stands at 0.0074% on Tuesday, meaning that longs are paying shorts. Often, when the funding rates flip from negative to positive, the Cardano price skyrockets.

Cardano Price Eyes Next Resistance at $0.51

The Cardano chart shows a token with bulls building momentum. The price has recently broken out of a falling channel, after bottoming out at $0.40. That breakout is backed by growing volume as the bulls target the immediate resistance around $0.51, aligning with the 50-day SMA. 

The 50-day SMA at $0.51 is holding steady, while the 200-day SMA at $0.69 serves as a strong long-term resistance. However, with volatility kicking in, the Cardano price may surge higher to the 50 SMA.

The RSI (Relative Strength Index) at 48.64 sits near neutral, not overbought yet, which leaves room for more gains if momentum holds. The MACD shows a bullish crossover with the MACD line (blue) breaking above the signal line (orange).

Looking ahead, the falling channel from which the price broke out suggests buyers are streaming in, as the rising volume shows growing confidence in the ADA market. If Cardano price holds above $0.45 (current price), there could be a push toward $0.51 resistance soon. A break above this zone will open the door towards $0.60-$0.69 zones. 

On the other hand, if the current price level cracks, there might be a retreat to $0.40-$0.39 support zones. Meanwhile, the Cardano price still has room to move. The 3% surge shows retail FOMO, as technical indicators reinforce further upside. In the short term, traders could aim for $0.51 if the breakout holds, but in the long term, $0.69 could be in play if this trend holds.