As an experienced analyst, I believe that the current uptrend in Cardano’s native cryptocurrency ADA could result in a significant breakout from the wedge pattern. The market recovery, coupled with the upcoming hard fork and Cardano’s historical price surges following major network upgrades, provide strong catalysts for this potential trend reversal.
As a crypto investor, I’ve noticed an uptrend in Cardano‘s native currency, ADA, for the past three days, following the broader market recovery. The recent Bitcoin price bounce back from $55,000 and its resilience against continued selling by the German government have alleviated some of the market pressure. With this renewed market sentiment, ADA has climbed up to $0.384, moving closer to a bullish breakout from a significant reversal pattern.
Cardano Price Analysis: Is a Breakout from the Wedge Pattern Imminent?
Over the last four months, the Cardano price has been descending gradually as it formed a wedge pattern. The downward slanting trendlines caused the ADA price to drop from $0.81 to $0.357, resulting in a significant decrease of approximately 56%.
In theory, this bearish pattern suggests that the momentum has reached maturity among sellers, which in turn strengthens the buying power and allows them to retake control. Following market recuperation, the upcoming hard fork, fueled by the altcoin, bounced back from the pattern’s support at $0.33 to $0.38, resulting in a recovery of 16%.
Cardano is preparing for its upcoming significant upgrade, known as the Chang Fork, which brings it closer to fully decentralized and community-led governance. This update necessitates endorsement from approximately 70% of stake pool operators following their testing and adjustment periods.
Cardano is preparing for the Chang Hard Fork, set to occur by the end of July.
Noting the past event, $ADA experienced a significant price increase of around 130% before its last hard fork in 2021. The cryptocurrency rose from a value of $1.35 to reach $3.10 within a single month.
— IntoTheBlock (@intotheblock) July 6, 2024
As a researcher studying the historical trends of Cardano’s token, ADA, I have observed significant price fluctuations following major network upgrades. For example, the Alonzo hard fork in 2021 led to an astonishing increase of approximately 130% in ADA’s price within a month, rising from $1.35 to $3.10. This noteworthy price surge highlights the potential market value impact of future Cardano network upgrades.
As a crypto investor following Cardano closely, I’m excited to share that during last weekend’s livestream, Charles Hoskinson, the founder of Cardano, revealed some promising news. He announced that the network’s much-anticipated upgraded node, which we refer to as version 9.0 (node v9.0), is now ready for release. Assuming all goes smoothly without any unexpected hurdles, this significant update should go live next week.
As an analyst, I believe that the developing situation around ADA‘s price suggests a higher likelihood of it surpassing the upper limit of the wedge pattern we’ve been observing. Should this occur, it would represent an early indication of a trend reversal and offer potential buying opportunities with solid foundation for continued upward momentum.
A post-breakout rally could drive the Cardano price to $0.52, followed by $0.62.
Technical Indicator:
- RSI: A notable higher-low formation in the daily Relative Strength Index slope marks the increasing accumulation trend in the asset during a market dip
- EMAs: The 0-and-50-day Exponential Moving Average as dynamic resistance indicates the near-term trend is active bearish.
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2024-07-10 21:46