Cardano (ADA) Price Analysis: Bullish Pattern Breakout Could Lead to 25% Rally
Cardano (ADA) is making waves in the cryptocurrency market as it attempts to break out of a bullish pattern, signaling a potential 25% rally upon breakout. Despite facing challenges from broader market cues, investors’ confidence in ADA could drive the price higher.
One key factor supporting the potential price rise is the shift in supply distribution among Cardano holders. Recent data shows that over 4% of all circulating ADA has moved from short-term holders to mid-term holders in just the last four days. This indicates that investors are holding onto their ADA in anticipation of further price increases.
Additionally, Cardano is currently in an opportunity zone based on the Market Value to Realized Value (MVRV) ratio. The MVRV ratio, which measures investor profit/loss, is currently at -11% for ADA. Historically, ADA has seen recovery when the MVRV ratio is between -9% and -15%, suggesting that now may be a good time for accumulation.
In terms of technical analysis, Cardano’s price has been stuck around $0.49 for nearly two weeks, failing to breach the upper trend line of a descending channel. However, if ADA can successfully break out of this pattern, the target post-breakout is set at 25%, with a potential price range between $0.62 and $0.66.
On the flip side, if ADA loses support at $0.47, a drawdown to $0.40 is likely, which could invalidate the bullish thesis and lead to further price declines.
Overall, Cardano’s potential breakout and the support from investors suggest that ADA could see a significant price rally in the near future. As always, investors are advised to conduct their own research and consult with a professional before making any financial decisions.
