Journalist
Posted:
- The price of ADA has risen more than 60% in the last seven days.
- Market indicators pointed to a speedy price correction.
Cardano [ADA] has shown impressive performance in recent days. While this increase has been meteoric, the latest data from ADA suggested a pullback. Will this be the end of Cardano’s bull rally?
Cardano’s huge price increase
CoinMarketCaps facts revealed that ADA bulls surpassed the bears last week as the token’s price rose by more than 60%. In the last 24 hours alone, the token’s price has increased by more than 36%.
Cardano investors, who mostly suffered losses, enjoyed gains thanks to this latest uptrend.
To be precise, 2.35 million ADA addresses gained thanks to the latest uptrend, accounting for over 52% of the total number of ADA addresses.
Source: IntoTheBlock
World of Chats, a popular crypto analyst, recently posted a tweet highlighting that ADA managed to achieve a successful breakout after the emergence of a bullish breakout.
The pattern emerged in December 2023 and Cardano’s price has been consolidating in it since then.
Since the outbreak, ADA has already posted a gain of more than 40%.
AMBCrypto then checked other data sets to find out if this bull run would continue, as there were a few metrics that looked bearish.
Source:
Will ADA’s bull run end?
Our analysis of Coinglass’ facts revealed that Cardano’s Long/Short Ratio registered a decline over the past 24 hours.
This suggested that there are more short positions in the market than long positions, which can be considered a bearish development.
We then looked at Santiment’s data to better understand Cardano’s further trajectory. According to our analysis of Santiment’s data, Cardano’s daily active addresses have fallen slightly in recent days.
However, the rest of the metrics looked quite bullish.
Source: Sentiment
For example, the token’s trading volume increased along with its price. When trading volume increases with price, it acts as the basis for a bull rally. Similarly, the token’s MVRV ratio increased.
Apart from that, Cardano’s social dominance has increased significantly, indicating that the token’s popularity has risen in recent days.
Realistic or not, here it is The market cap of ADA in BTC terms
With these factors in mind, AMBCrypto looked at ADA’s daily chart. We found that the price of the token had risen well above the upper limit of the Bollinger Bands.
This means that the chance of a price correction is high. Moreover, the Relative Strength Index (RSI) was also in the overbought zone, which could cause a price drop.
Source: TradingView
