Sunday, June 23, 2024

Cardano Price Outlook: Recent ADA Surge May Spark 15% Rally.

Technical indicators and on-chain measurements indicate that the price of Cardano (ADA) could be poised for a 15% surge following the significant 7% price increase seen on Monday. The so-called “Ethereum- Killer”‘s price movement has recently created a double-bottom technical formation and broken over the crucial $0.47 resistance, both of which are positive indicators supported by growing network activity.

The price of Cardano appears to be rising. 

On Monday, the price of Cardano broke over the $0.47 barrier level in the four-hour time period and has remained above it. The Relative Strength Index (RSI) and price displayed a positive divergence from May 10 to May 15. This occurs when prices form lower lows and the RSI indicates higher lows. This would indicate a strengthening bullish momentum, and a move above the oversold region might serve as the impetus for a new long order.

The price of Cardano reached a peak in the first half of May at $0.47 after twice testing the $0.42 support level. This double-bottom pattern, or “W”-shaped structure, is a bottom reversal pattern that frequently suggests a possible trend reversal in favor of the bulls. ADA is expected to rise 15% to the high from April 11 if bullish momentum continues and it breaks the resistance at $0.52, which is also the monthly pivot mark for April and the daily high from April 22.

The Volume Profile indicator indicates that a strong support zone lies between $0.47 and $0.45 in the case of a downturn. Because it has the largest traded volume level, this location is an excellent opportunity for investors to take advantage of the downturn. This area has additional support because it is a high-likelihood reversal zone, nearly coincident with the 61.8% Fibonacci retracement level at $0.45.

Cardano’s on-chain analytics reinforce the optimistic viewpoint. The number of active addresses increased dramatically from 21,640 on May 12 to 38,620 on May 20, according to data from IntoTheBlock. This implies that there is an increasing need for Cardano.

Future price movement may also be predicted by looking at the volume of transactions made by large-wallet investors, or those with assets worth over $100,000. Cardano transaction volume has increased, indicating that whales are amassing ADA tokens.

Investors and whales holding more than 0.1% of the supply can see how their positions are shifting by looking at the Large Holders Netflow. In summary, netflow decreases signify reduced holdings or sales, whereas surges reflect significant players’ acquisitions. The surges in netflow are displayed in the chart below.

The prices of ADA could decrease even with the robust on-chain data and technical analysis of Cardano if the price is unable to overcome the $0.52 resistance level and the overall sentiment in the cryptocurrency market is negative.

Cardano’s price will make a lower low in relation to the swing low of May 15 if its daily candlestick closes below $0.42. This would likely prompt investors to liquidate their holdings out of fear and resume the cryptocurrency’s slide. The bullish case will be disproved, resulting in a 7% decline to the next significant support level at $0.39, which served as a formidable barrier in the middle of April and mid-November of 2023.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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