Will Cardano Price Hit ATH? Analyst Says “Not the Time to Sell” ADA

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have seen my fair share of bearish trends and market corrections. However, when it comes to Cardano (ADA), I find myself intrigued by the recent developments and the consensus among analysts that “this may not be the time to sell ADA.

This week saw increased selling in the cryptocurrency market as Bitcoin‘s price dipped from the psychologically significant $70,000 mark. The trend was swiftly mirrored across altcoins, leading to a new round of corrections for prominent digital currencies like Cardano. Yet, crypto experts advise that now might not be the best time to sell ADA.

On Friday, during trading in the Asian market, the price of ADA dropped by 0.8% to reach $0.34. At the same time, its market capitalization dipped significantly to $12 Billion. The repeated attempts by Cardano buyers to defend a bullish pattern suggests a possible price increase, given the positive signs in on-chain indicators.

Cardano Price Set for ATH? Analyst Says “Not the Time to Sell” ADA

In a recent tweet, crypto analyst Deezy.eth. highlighted a recurring pattern in Cardano price that led to a major recovery trend in the following months. The attached image shows a 3-day Heiken Ashi candle with the Relative Strength Index (RSI) momentum indicator.

The analyst found that when the Average Dynamic Asset (ADA) price, typically at the lowest point of a decline, showed an increase in Relative Strength Index (RSI) gradient. Typically, this bullish divergence suggests buyers are returning to the market at reduced prices, potentially sparking a fresh upward trend.

Data from December 2018 and March 2028 indicates a significant shift in trend after Relative Strength Index (RSI) divergence, culminating in the current all-time high (ATH) of $3.1.

Additionally, Cardano is creating a stir by linking with the Bitcoin system through BitcoinOS (BOS), thereby opening up approximately $1.3 trillion in liquid Bitcoin for its DeFi sector. This partnership takes advantage of BOS’s Grail bridge to facilitate safe, trustless transactions of Bitcoin using zero-knowledge (ZK) cryptography.

Cardano Poised for Bullish Rebound as MVRV Ratio Turns Negative

The possibility of Cardano experiencing a bullish price reversal is gaining more attention as the 30-day Market Value to Realized Value (MVRV) ratio falls into a negative zone, according to Santiment’s analysis. This dip in MVRV to -5.1% suggests that short-term traders are currently suffering losses.

Consequently, extended periods of no change or inactivity might instigate panic selling from speculative traders. On the other hand, these situations may also draw in long-term or consistent investors to the market. Notably, such transitions have historically boosted ADA’s prices with a prolonged bullish trend.

ADA Price Analysis: Triangle Breakdown Hints 13% Drop

Over the past three days, the price of Cardano dropped from $0.369 to $0.34, representing a 7.4% decrease. This bearish shift might signal a break below the support trendline of a triangle pattern that has been in place since mid-July, hinting at potential further declines.

Should the day’s closing price drop below its current support level, sellers may gain more control, potentially causing a 13% decline that would take the asset down to $0.3. This significant psychological level aligns with an approaching trendline support, which could encourage buyers to make a stand and fight back.

If the triangle structure doesn’t collapse, there’s a strong possibility that the price of Cardano could surge by approximately 14%, aiming to surpass the upper boundary of the triangle formation. This potential breakout from the accumulation phase is essential for ADA coins to reach new all-time highs (ATH).

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2024-10-25 16:57