- ADA’s price has surged by more than 3% since retesting a key support level.
- Metrics signaled a potent price reversal.
Cardano [ADA] has experienced a notable price surge of over 3% following a pullback to a crucial support level. This has raised questions on whether it is retesting the critical support level at $0.42.
Let’s find out –
As of this writing, ADA’s price was testing a $0.42 support level for a likely reversal to $0.47 and $0.50 key levels. Breakouts from the levels will affirm the reversal of a bullish rally.
The $0.42 support levels confluenced with pennant pattern support levels, suggesting preparation for an upward move.
The 50-day and 100-day EMAs acted as a dynamic resistance level at press time, and a breakout above these levels will suggest a sustained price reversal.
The stochastic RSI (13.67) was in an oversold zone as well, indicating an imminent bullish reversal, likely affirming that ADA is transitioning from a support test to a price rebound.
Source: TradingView
Which tale do the metrics tell?
AMBCrypto’s analysis of the Santiment’s recent whale activity data indicated an increased percentage of ADA’s total supply held by whales holding more than $5 million.
This trend suggested a widening confidence among the investors in Cardano long-term potential, impending price reversal. The social volume tracked by Santiment was also on the rise.
Increased social activity correlated with investor interest—a bullish reversal signal.
Source: Santiment
AMBCrypto then analyzed Santiment’s Cardano development data, which indicated a strong upward trend.
Cardano’s continuous innovation ecosystem may act as an investor magnet and potentially sustain the building bullish momentum for a likely reversal to a price surge.
Recently, Cardano’s Voltaire phase, which is in the final touches of its roadmap to create a fully decentralised blockchain ecosystem set to occur this month, may have activated the bullish momentum building for the reversal.
Source: Santiment
Is your portfolio green? Check out the ADA Profit Calculator
What’s next for Cardano?
Cardano’s recent price movements strongly suggested a bullish reversal on the horizon. Technical indicators, moving averages, and stochastic RSI signaled a bullish reversal.
Moreover, market sentiments—increased development activities, increasing social volumes, and whale activity—all have their guns pointed at a significant price reversal for Cardano.
