- 1 Cardano (ADA) price recovered over 18% and retested the 50 day EMA mark this week.
- 2 A falling wedge pattern was observed, and the token is on the verge of a breakout.
ADA rose over 18% this week. It seems to be on the right track although it paused at the 50-Dat EMA barrier.
Fortunately for Cardano, its holders might be looking to accumulate, which may turn out to be the critical factor in the revival ahead.
Since March 2024, ADA experienced a significant correction, trading in a downtrend. It reverted to the supply region of $0.8000 and fell over 45% over the last three months.
Amidst the lower lows formation, ADA found support around its vital pivot of $0.3500 and displayed a revival last week. Buyers are expected to expand the surge.
At press time, Cardano traded at $0.4061 with an intraday drop of 1.36%, reflecting neutrality on the chart. It has a monthly return ratio of -9.30% and 36.20% yearly, reflecting a short-term consolidation.
The pair of ADA/BTC is at 0.00000674 BTC, while the market cap is $15.03 Billion. Analysts are neutral and suggest that ADA may break out of a falling wedge and rise sharply.
Cardano Retained Strength: Could it Outperform Ahead?
In the past few trading sessions, Cardano (ADA) had gained traction and recovered the gains sharply. Moreover, it is likely to retest the primary hurdle of $0.5000 in the next few sessions.
If bulls continue with the same momentum, a breakout would be imminent and the coin would pull back to $0.4600 followed by $0.5000. Conversely, if bears secure the 50 day EMA mark, ADA might face rejection and flip to $0.3800.
Source: ADA Price Volume Chart By Santiment
Notably, the price recovery was done with a volume surge of over 59% this week, suggesting that a rise is on the horizon.
Sharp Surge in Weighted Sentiment Data: What Does it Mean?
Its weighted sentiment data displayed a massive spike of over 120% and soared to the 1.80 mark, highlighting the positive sentiments among holders.
Source: Santiment
Notably, the price volatility data cooled off around the 0.099 mark, displaying a steady price recovery.
A falling wedge pattern was spotted as the price traded close to the lower trendline barrier of $0.4100. If the bulls breach the zone, a short covering rally would be likely.
Social Metrics Display Surge
Following the price recovery, user engagement on the social media platforms revealed an increase, as the social dominance rose over 54% to 1.69.
Source: Santiment
However, the development activity data declined to the 443 mark, revealing a neutral outlook. Crypto analyst @WorldofCharts in his tweet mentioned that ADA was ready to rise to the $0.80 mark in the coming sessions.
$Ada
— World Of Charts (@WorldOfCharts1) July 2, 2024
Seems Like Preparing For Solid Bullish Rally Formed Falling Wedge Incase Of Successful Breakout Expecting Move Towards 0.80$ In Coming Days#Crypto #Ada #Cardano pic.twitter.com/INxvBupImR
The Relative Strength Index (RSI) displayed a positive crossover and climbed above the midline region. Similarly, the MACD indicator plotted green bars on the histogram, reflecting strength.
The immediate support levels for the Cardano token are $0.3800 and $0.3500, whereas the key upside hurdle is around the $0.4500 mark, followed by $0.4700.
The Cardano token price climbed the 20-day EMA mark and is trying to overtake the 50-day EMA mark. Moreover, a fresh bullish wave was triggered, as the buyers eye the $0.5000 mark.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
