- Cardano’s price hiked by over 6% in the last seven days
- Most metrics and indicators seemed to be in favor of a bullish breakout
As a researcher with experience in analyzing cryptocurrency markets, I’m encouraged by the recent bullish signs for Cardano (ADA). The token’s price has shown significant growth in the past week, hiking over 6%, and its long-term investors seem to be holding strong.
Recently, the bulls of Cardano (ADA) have regained strength, as indicated by the token’s daily and weekly charts showing green figures at present. Moreover, the emerging trend seems to suggest that things may improve further for ADA, potentially leading to a significant price increase of over ten percent.
Cardano turns bullish
As a researcher studying the cryptocurrency market, I’ve observed that Cardano (ADA) has experienced a substantial loss in market capitalization over the past few months. Consequently, more than two-thirds of ADA investors have seen their holdings deplete due to this price downturn.
Despite the current market fluctuations, information from IntoTheBlock indicates that long-term confidence in Cardano among investors is unwavering. This belief is supported by the fact that approximately 70% of ADA token holders have possessed it for over a year.
Long-term holders’ confidence has now started to pay off as ADA’s charts turned green.
Based on data from CoinMarketCap, Cardano’s price has seen a significant increase of around 6% in the past week and approximately 2% within the last day. Currently, ADA is being exchanged at a price of $0.397 and boasts a market capitalization exceeding $14.2 billion.
The emergence of a bullish falling wedge pattern on the token’s chart promised better news too.
Mid-April marked the beginning of ADA‘s convergence within a particular price range. After encountering its underlying support, the cryptocurrency exhibited an upward trend, suggesting a potential breach from this established pattern.
If ADA manages to surpass the resistance level at $0.56 in a bullish market scenario, there is a strong possibility for a significant price surge towards $0.61. Overcoming this hurdle could potentially pave the way for ADA to challenge its previous peak of $0.79 within the upcoming weeks.
Is a breakout inevitable?
After examining Cardano’s on-chain information, AMBCrypto explored if there were indications of an impending bullish surge based on the data. According to our assessment of Santiment’s statistics, the volatility of ADA‘s daily price had started to rise following a significant drop.
Its MVRV ratio also improved substantially, which can be inferred as a bullish signal.
Moreover, both the price and open interest of the asset experienced an increase. A significant rise in open interest often indicates a strong likelihood that the current pricing trend will persist.
Despite the neutral reading of ADA‘s fear and greed index at the current moment, implying that the market may potentially move in either an optimistic or pessimistic direction.
The MACD indicator signaled a buy signal with an upward crossover on ADA‘s price chart. Additionally, the RSI for Ada showed a significant surge, implying that there is a strong probability of further gains and potentially a breakout from its falling wedge formation.
Nonetheless, the Chaikin Money Flow (CMF) turned bearish as it headed south.
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2024-06-29 20:07