Altcoins are striving to recover losses and maintain their position as investors assess the current state of the market. Cardano’s ADA, currently ranked 10th, has declined by 2% in the past 24 hours and 3% over the last seven days.
Analyst Crypto Capital Venture discussed a consistent pattern in Cardano’s (ADA) price movements, focusing on the 20-week moving average. Historically, whenever ADA enters the oversold territory on the stock RSI (a momentum indicator), it eventually moves up.
This pattern has occurred around ten times, signaling major price movements each time. ADA is currently in the oversold territory again. If history repeats, it might soon test the 20WMA around $0.52. Breaking above this level could indicate the start of a new bullish cycle for ADA, similar to past cycles.
Short-Term Price Analysis:
On the daily chart, there’s a potential bullish divergence on the RSI (Relative Strength Index), a momentum oscillator. This suggests that even though the price has been dropping, the momentum might be slowing down, indicating a potential bounce.
He compared current price movements to past patterns and noted similarities, suggesting we might see a similar structure and bottoming out soon. However, some sideways or downward movement could still occur before a significant upward move.
Critical Resistance Range:
For a bullish scenario, ADA needs to break above key moving averages: the 20-day around $0.41 and the 50-day around $0.44. The crucial range to watch is $0.45 to $0.48 for a bullish confirmation. On the weekly chart, ADA needs to get above $0.53 to indicate a strong bull market.
There might still be some downward or sideways movement before a clear bullish trend emerges. If ADA can break above and maintain support at the key levels mentioned, it could signal the start of a significant upward trend.
