- Cardano’s price has risen by more than 6% in the past seven days
- Most metrics and indicators seemed to be in favor of a bullish breakout
Cardano [ADA] Bulls have been making a comeback lately as both the token’s daily and weekly charts were green at the time of writing. Taking into account the latest data, things could get even better for the token as a bullish pattern seems to be emerging on the chart. The expected rally could then push ADA’s price up by double digits.
Cardano turns bullish
Cardano has lost a significant percentage of its market capitalization in recent months. As a result of this price drop, more than 66% of ADA investors were driven out of their money.
However, IntoTheBlock’s facts revealed that long-term investors remain confident in Cardano. This claim can be supported by the fact that almost 70% of ADA investors have owned the token for more than a year.
Source: IntoTheBlock
Long-term holders’ confidence is now starting to pay off as ADA’s charts turned green.
According to CoinMarketCapCardano’s price is up more than 6% in the last seven days and 2% in the last 24 hours. At the time of writing, ADA was trading at $0.397 with a market cap of over $14.2 billion.
The emergence of a bullish falling wedge pattern on the token’s chart also promised better news.
Source: TradingView
In mid-April, ADA began to consolidate within this pattern. It has now tested its support and the recent price rise indicated a breakout from this pattern.
In the event of a successful breakout, ADA investors could see a massive bull rally to $0.61. A successful breakout above this level; could allow ADA to retest its March high of $0.79 in the coming weeks.
Is an outbreak inevitable?
AMBCrypto then looked at Cardano’s on-chain data to see if it supported the possibility of a bullish breakout. According to our analysis of Santiment’s data, ADA’s 1-day price volatility started to rise after a sharp decline.
The MVRV ratio also improved significantly, which can be inferred as a bullish signal.
Moreover, open interest also rose along with the price. An increase in this measure generally indicates that the ongoing price trend is likely to continue.
Nevertheless, at the time of writing, ADAs fear and greed index was in a neutral position, suggesting the market could go either way.
Source: Santiment
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However, the MACD showed a bullish crossover on the charts. ADA’s Relative Strength Index (RSI) also recorded a sharp increase, indicating that ADA is likely to continue its rally, which could lead to a breakout from the falling wedge pattern.
Nevertheless, the Chaikin Money Flow (CMF) turned bearish as it moved south.
Source: TradingView