- The ADA has fallen by more than 23% in the past seven days.
- Most metrics and indicators supported the possibility of ADA testing the bull pattern.
As with most cryptos, Cardano [ADA] bears led the market as the token’s price charts remained red. However, there were changes towards a trend reversal as a bull pattern formed on the ADA chart.
Will this allow ADA to greenlight its charts? Bitcoin [BTC] undergoes its next halving on April 19?
Cardano bulls wake up
The past week has been disastrous for ADA investors as the token’s price fell by as much as 23%. According to CoinMarketCapIn the past 24 hours, the ADA has fallen by more than 2.5%.
But there was more to the story, as at the time of writing, ADA’s price was consolidating within a bullish symmetrical triangle pattern, indicating a bull rally.
Source: TradingView
AMBCrypto’s analysis of ADA’s 4-hour chart revealed that if the token’s price breaks above the $0.454 resistance level, it could see a strong bull rally as BTC undergoes its fourth halving process.
The possibility of ADA testing the pattern seemed high as the token’s price had risen 1.15% in the past 60 minutes.
At the time of writing, it was trading at $0.4498 with a market cap of over $16 billion, making it the 10th largest crypto.
ADA on the right track
Apart from the price action, some metrics also looked bullish. AMBCrypto’s review of Santiment’s data showed that ADA’s 7-day MVRV ratio improved in recent days.
The funding rate had also fallen. Since prices tend to move in the opposite direction than the financing rate, there was a possibility that ADA would soon register a price increase.
Source: Santiment
The token’s social volume remained relatively high over the past week, with a significant spike on April 14. The rise in social volume clearly reflected Cardano’s popularity in the crypto space.
Furthermore, weighted sentiment rose last week after falling on April 14, indicating that bearish sentiment around the token was beginning to decline.
Source: Santiment
To better understand whether ADA will manage to break above the $0.454 resistance level, we next looked at the daily chart. We found that Cardano’s Relative Strength Index (RSI) was in the oversold zone.
Read Cardanos [ADA] Price prediction 2024-25
This indicated that buying pressure on the token could increase soon, resulting in a price increase. However, the MACD showed a bearish advantage in the market.
The Money Flow Index (MFI) also fell, suggesting it could take longer for the ADA to turn bullish.
Source: TradingView