Cardano Price Could Turn Bullish — Can ADA Regain $0.60?
ADA could be on a verge of a bullish breakout as suggested by on-chain and chart analysis. But can it regain $0.60?
Key Takeaways
- Cardano shows signs of potential bullish reversal after going through a bearish phase
- On-chain indicators suggest the price could go up, despite a 33% weekly fall.
- ADA us forming bullish symmetrical triangle pattern, which suggests it could move up to $0.60.
Recently, Cardano (ADA) has been experiencing a bearish trend, similar to many other cryptocurrencies. Despite a 33% price drop last week and a further drop on April 17 to $0.42, there are signs of a potential reversal.
With a drop of 43% since its March 8 peak of $0.80, is ADA ready for an upturn to $0.60?
On-chain Indicators
ADA‘s seven-day MVRV ratio has risen while its price remained trading sideways. This divergence usually indicates a bullish sentiment with a drop in its funding rate since April 13, often predicting a price increase.
Social volume and weighted sentiment for ADA have also been high, indicating growing popularity and diminishing bearish sentiment. As we can see from the chart below, the weighted sentiment has risen since its low on April 13.
Although still in the negative territory of 0.58, we could see it slowly crossing the 0 threshold and turning positive.
Cardano (ADA) Price Analysis
ADA is forming a bullish symmetrical triangle pattern on the hourly chart, suggesting a possible bull rally soon. Cardano experienced a notable increase recently. The upturn started on October 19, rising from $0.23 to $0.81 on March 14.
However, following this high, Cardano’s value dropped to $0.40 by April 13 and started consolidating, as suggested by the symmetrical triangle. As with a symmetrical triangle, the possibility of a breakout from each side is equal. However, considering the decrease that came with it, ADA, which is coming to its highly significant support of $0.40, looks more likely to break out to the upside.
The daily chart RSI also suggests ADA is likely oversold. On April 13, it reached 24%, and has stayed below its 30% threshold ever since.
If we see a breakout to the upside, Cardano’s price should to move impulsively in a five-wave manner, with its first two sub-waves being the recovery from April 13 and its consolidation being its corrective second wave.
This brings the breakout momentum to wave three with a target of $0.55 and $0.60 for its final fifth wave. Strong resistance at $0.60 is another reason the increase might be stopped at those levels. In all, our analysis points at ADA being ready for a recovery but will it come soon and how far can it go, we are just going to wait and see.
Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
