- Cardano’s price surged by more than 4% in the last 24 hours.
- In case of a breakout, ADA might first reach $0.45.
Cardano [ADA] investors were having a good time as the token gained bullish momentum. In fact, things can get even better in the coming days because of a pattern that emerged on the token’s chart.
In case of a breakout, investors might witness a 100% rally.
A bull pattern on Cardano’s chart
CoinMarketCap’s data revealed that while several cryptos witnessed price corrections, ADA’s value surged by more than 4% in the last 24 hours.
At the time of writing, ADA was trading at $0.3589 with a market capitalization of over $12.9 billion, making it the 11th largest crypto.
Despite the price increase, IntoTheBlock’s data pointed out that only 22% of Cardano investors were in profit.
AMBCrypto’s analysis of ADA’s daily chart highlighted a bull pattern, which suggested that more investors might earn profits in the coming days.
As per our look, a bullish falling wedge pattern formed on ADA’s daily chart in February.
Since then, the token’s price has been consolidating inside the pattern. At press time, Cardano was on its way to test the resistance of the pattern.
A successful breakout above the pattern would initiate a 100% price rally, meaning that ADA might soon double its price. To be precise, in case of a bullish breakout, ADA might reclaim $0.7.
Source: TradingView
Is a breakout possible?
AMBCrypto then planned to assess the token’s on-chain data to find out whether metrics hinted at a successful breakout.
As per our analysis, ADA’s MVRV ratio went into the positive zone, which can be inferred as a bullish signal. Its Open Interest increased along with its price.
Whenever OI rises, it indicates that the chances of the current price trend continuing are high. Additionally, Cardano’s Social Dominance also increased last week, reflecting its popularity.
Source: Santiment
However, the token’s NVT ratio increased sharply. This meant that the token was overvalued, hinting at a price correction. Moreover, Cardano’s fear and greed index was at a “greed” stage at press time.
Whenever the index hits this level, it indicates a possible price correction.
The technical indicator MACD displayed a bullish crossover. ADA’s Relative Strength Index (RSI) also registered an uptick, hinting at a successful breakout above the falling wedge pattern.
Read Cardano’s [ADA] Price Prediction 2024-25
Nonetheless, the Bollinger Bands suggested that ADA’s price was entering a less-volatile zone, which might pause the token’s bull rally.
If the bears take control, then investors see ADA dropping to $0.28. But if the token breaks out, then it might first target $0.45 before it reclaims its February high.
Source: TradingView
