- Cardano bears dominated the bulls last week.
- Several measures and indicators suggest a reversal of the trend.
While the market has remained somewhat bearish, Cardano (ADA) has been one of the worst hit among the top altcoins. But investors should remain patient as ADA was consolidating over several months.
A breakout could trigger a rally, which could allow ADA to regain its lost value.
Cardano bulls will wake up soon?
Data from InToTheBlock revealed that over the past seven days, the number of ADA ups and downs has remained more or less the same. That said, bear numbers were slightly higher.
This could have played a role in ADA’s latest price correction. The token’s value fell by more than 4% in the last 24 hours and was trading at $0.3438.
Source: In the block
Due to the latest price correction, 563.8 thousand Cardano addresses remained in profit, which represents only 12% of the total number of ADA addresses.
There remained, however, the hope of an imminent rebirth. World Of Charts, a popular crypto analyst, recently published a tweet highlighting a notable development. According to the tweet, a multi-month uptrend has appeared on ADA’s price chart.
This pattern first appeared in late December 2023, and since then the price of ADA has consolidated there.
At the time of writing, the consolidation range tightened as the token attempted to break out. In the event of a breakout, investors could soon see Cardano price surpass $0.5.
If the rally continues, then ADA might as well record a 90% overall bull rally.
Source:
Apart from this, AMBCrypto reported Earlier, the ADA mimicked a pattern it followed in 2020. This suggested a potential surge starting in mid-November, coinciding with the US election.
What metrics suggest
AMBCrypto then planned to evaluate Cardano’s on-chain data to see if it hints at a trend reversal, which could allow ADA to break through.
Our analysis of Santiment data revealed that ADA’s trading volume fell by double digits while its price fell. Its open stake also followed a similar downward trend.
These two indicators, when decreasing along with the price of an asset, indicate that the chances of an uptrend reversal are high.
Additionally, whale activity around Cardano has also remained on the rise, as evidenced by the stable number of whale transactions over the past seven days.
Source: Santiment
Read Cardano (ADA) Price Prediction 2024-2025
To see if technical indicators were also telling a similar story, we analyzed ADA’s daily chart. According to Bollinger Bands, ADA was testing its 20-day SMA resistance at press time.
Although the token is in a less volatile zone, a break above this resistance could trigger a bullish rally.
Source: TradingView
