Will Cardano Price Action Repeat the Market Trend of 2019? The indicators say…
- After a major correction, the price of ADA rose by more than 1.5% in 24 hours.
- Indicators looked optimistic, but market indicators said otherwise
Cardano (ADA) Recorded there was a major price correction last week that saw the token price rise to $0.42. However, the scenario changed in the last 24 hours when the daily chart turned green. Therefore, the question is: does this indicate the start of a bullish rally? The one Cardano has been planning for weeks?
Cardano follows historical trend
ADA didn’t start May off on a good note as bears took control of the token’s price. However, the situation soon changed as the cryptocurrency rose by almost 2% and was trading at
At the time of publication, $0.4677 with a market capitalization of over $16.6 billion.
While this may not seem very optimistic at first glance, there is more to it than that. Ali, a popular cryptanalyst, recently shared cheap highlighting how ADA mimics the price action of 2019. consolidated in a parallel channel, signaling the end of the 2019 bear market.
At that point, Cardano broke out of the channel with a 75% gain, followed by a 56% price correction, setting the market up for a massive 4,095% bull run.
ADA appears to have started to act similarly in 2023, with the cryptocurrency consolidating in a parallel channel before skyrocketing 72%. If the altcoin finally completes its correction on the charts, we can expect ADA to begin another bullish rally. If this happens, the cryptocurrency will soon reach new heights.
With the potential for massive growth high, now may be the right time to accumulate. And yet, the total number of Cardano holders has remained stable over the past three months, a sign that new investors have not been buying ADA.
What do the indicators say?
AMBCrypto then analyzed Santiment’s data to see if the metrics hinted at history repeating itself. One of the bullish indicators was the MVRV index, which recorded strong growth.
Whale activity around the token also remained high last week. Additionally, open interest in Cardano has increased along with its price, which is a sign that the bullish trend may continue.
However, unlike the above indicators, most technical indicators turned out to be bearish. For example, the Money Flow Index (MFI) recorded a sharp decline. Chaikin Cash Flow (CMF) also followed a similar trend.
This suggests that ADA may not be able to initiate a massive bullish rally, at least in the short term.
Realistic or not, here it is Market Cap of ADA in BTC
On the contrary, MACD showed a bullish crossover. If a bullish rally occurs, it will allow more investors to be better off.
According to IntoTheBlock, at the time of this post, only 35% of ADA investors have made a profit. data.
This is an automatic translation of our English version.