- After a major correction, ADA’s price hiked by over 1.5% in 24 hours
Metrics looked bullish, but market indicators suggested otherwise
As a researcher with extensive experience in the crypto market, I find Cardano’s recent price action intriguing. After experiencing a major correction that pushed ADA‘s price down to $0.42 last week, the token has seen a significant increase of over 1.5% within the past 24 hours. This price surge is noteworthy, especially when considering the bullish metrics and bearish market indicators.
As an analyst, I’ve observed a significant price correction in Cardano [ADA] over the past week, which took its value down to $0.42. Yet, the market dynamics have shifted remarkably in the last 24 hours, causing the daily chart to display a green trend. So, the million-dollar question is: Is this the initiation of an anticipated bull rally for Cardano? A rally that was speculated for several weeks based on certain technical indicators and market sentiments?
Cardano following a historical trend
The beginning of May didn’t bring positivity for ADA as bears dominated its price. But things turned around swiftly thereafter, with the cryptocurrency experiencing a nearly 2% surge to reach a value of $0.4677 and boasting a market capitalization surpassing $16.6 billion by press time.
Despite appearing unpromising at first, there’s more depth to the situation with ADA. Notably, crypto analyst Ali has brought attention to this coin’s resemblance to its price behavior in 2019. Based on his analysis, ADA formed a parallel channel during consolidation, which typically signals the conclusion of a bear market.
When Cardano escaped the confines of its channel last year, I witnessed a stunning 75% jump in its value. However, this was just the beginning as the market experienced a subsequent 56% correction. Looking back, these price movements laid the groundwork for an astounding bull run that eventually soared by an impressive 4,095%.
As a crypto investor, I’ve noticed some striking similarities between ADA‘s price action in 2023 and its behavior in the past. Specifically, ADA has been trading within a parallel channel, consolidating after a significant rally. If this pattern holds true, we could be on the verge of another bullish breakout, potentially resulting in a 72% surge. Should this uptrend materialize, I anticipate that ADA will reach new highs very soon.
With a strong possibility of a significant price surge, it could be an opportune moment to start amassing Cardano. However, an intriguing observation is that the number of Cardano holders has remained stagnant during the previous three months – potentially indicating a lack of new investment in ADA.
What do metrics say?
As a researcher, I delved into Santiment’s data to explore if there were any indications of history repeating itself based on their metrics. One particularly bullish sign stood out: the MVRV ratio displayed a significant spike upwards.
Last week, whale behavior surrounding the token was quite active. Moreover, Open interest for Cardano increased in tandem with its rising price, implying that the bullish trend may persist.
In contrast to the previously mentioned statistics, most technical indicators exhibited pessimistic signals. For example, the Money Flow Index (MFI) experienced a significant decrease, while the Chaikin Money Flow (CMF) mirrored this downward trend.
The suggestions indicate that ADA may not initiate a significant bull market surge in the near future.
Realistic or not, here’s ADA’s market cap in BTC terms
Instead of saying “On the contrary,” you could use “However, despite this,” or “Despite that indication,” to introduce your statement. For paraphrasing the second part, you could say: “The MACD line made a bullish crossover, which could potentially pave the way for a bull rally. This would benefit investors by allowing them to take advantage of the market’s upward trend.”
Based on the latest information available at the time of this writing, just over three out of every ten ADA investors were seeing a positive return on their investment, according to IntoTheBlock’s analysis.
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2024-05-04 17:11