Bitcoin‘s pre-halving period is causing sideways movement in cryptocurrencies like Cardano. The daily charts show unclear market control with short candles and long wicks, suggesting neither buyers nor sellers are in charge. However, Cardano’s price staying above significant support levels gives it a strong potential for an upturn.
Cardano Price Correction Finds Footing at Fibonacci Support
Over the past six weeks, the price of Cardano has followed a descending trendline that functions as a moving barrier to its upward progression. Starting from its peak at $0.81, the asset experienced a decline of approximately 50%, reaching a low of $0.4.
Although the Bitcoin price stayed above the significant $60,000 threshold, the attitude towards altcoins changed, moving towards establishing local bottoms. Consequently, the ADA price climbed up to $0.472 in an attempt to maintain its position above the 61.8% Fibonacci retracement line.
In practice, this FIB (Fibonacci) level functions as a significant level of support during market corrections. It provides potential buyers with an attractive entry point to buy back into the market.
Additionally, according to a recent report from Alicharts, the Market Value to Realized Value (MVRV) Ratio for Cardano suggests that the price of ADA may increase. When this ratio falls below -22%, it typically indicates that ADA holders are experiencing significant losses, which can lead to selling pressure being relieved and prices potentially rising.
Previously, there was a noticeable drop in ADA‘s price before it saw a significant surge of over 75%. Now, based on historical trends, the Market Value to Realized Value (MVRV) ratio has dipped below -22% once more, indicating that according to alicharts, Cardano’s native token could be due for another noteworthy price rise.
When Cardano’s MVRV Ratio (Moving Average of Realized Value) dropped below -22% in the past, the price of ADA significantly increased by more than 75%. Now that the MVRV Ratio for ADA has gone below this threshold once again, it’s possible that we might witness another substantial price surge.
— Ali (@ali_charts) April 19, 2024
If the Bitcoin halving leads to a resurgence in the altcoin market, then the price of Cardano (ADA) could break through its current resistance trendline and potentially reach a new high of $0.683, with further potential gains at $0.81.
Technical Indicator:
- Relative Strength Index: The daily RSI slope reverted from the oversold region indicating the ADA price may enter a relief rally in the coming week.
Exponential Moving Average: The 200 EMA slope of the weekly chart increases the support strength at the $0.445 mark.
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2024-04-19 19:29