Cardano’s price movement has taken the form of a descending triangle, yet indications suggest a potential reversal. If ADA succeeds in breaking and closing above $0.5410, there could be a substantial 30% climb. Conversely, a break and close below $0.4668 would negate the bullish outlook.
Cardano (ADA) continues to consolidate beneath a descending trendline, representing a bearish technical formation that has characterized the volatile altcoin market. However, there are evolving signs of a shift in this trend, coinciding with the broader resurgence observed in cryptocurrency markets.
Cardano may be reaching a potential bottom at this point in time.
Cardano (ADA) has been in a downtrend since mid-December, experiencing a roughly 30% decline. The current scenario suggests a potential bottoming out as the altcoin faces the challenge presented by the downtrend line. If buying pressure increases, ADA’s price could overcome this trendline and contend with resistance at the intersection of the 50-day Simple Moving Average (SMA) and the horizontal line at $0.5419.
Beyond this point, critical levels to monitor include the obstacle at $0.5908, positioned 10% above the current levels, or a higher resistance at $0.6412. In an exceptionally bullish scenario, the upward momentum could propel Cardano’s price to complete a 30% ascent, reaching $0.6800.
On-chain metrics provide backing for a positive outlook on Cardano.
Santiment’s metrics on social dominance and social volume indicate a rise in the mentions of the ADA token compared to other cryptocurrencies on social media platforms, providing additional support for the optimistic perspective.
Furthermore, the notable increase in the volume metric, coupled with a surge in whale transactions involving transfers exceeding $100,000 worth of ADA, indicates heightened trader activity. This development could have positive implications for the ADA price.
Conversely, if faced with rejection from the descending trendline, the ADA price may extend its decline beneath the support of the trendline, possibly testing the $0.4668 bottom, representing a decline of nearly 10% from the current levels.