- Cardano bears dominated the bulls last week.
- Several measures and indicators pointed to a trend reversal.
As the market remained somewhat bearish, Cardano [ADA] was one of the hardest hit among the top altcoins. But investors should remain patient as ADA consolidated within a multi-month pattern.
A breakout could trigger a rally, allowing ADA to regain its lost value.
Cardano bulls will wake up soon?
InToTheBlock’s data showed that the number of ADA bulls and bears remained more or less the same over the past seven days. However, the number of bears was slightly higher.
This could have played a role in ADA’s latest price correction. The value of the token fell by more than 4% in the last 24 hours, trading at $0.3438.
Source: IntoTheBlock
The latest price correction left 563.8k Cardano addresses profitable, which represented only 12% of the total ADA addresses.
However, there was still hope for a speedy revival. World Of Charts, a popular crypto analyst, recently posted a tweet point to a remarkable development. According to the tweet, a multi-month bull pattern appeared on ADA’s price chart.
The pattern first appeared in late December 2023, and since then the price of ADA has been consolidating within it.
At the time of writing, the consolidation range was tightening as the token tried to break out. In the event of a breakout, investors could soon witness Cardano’s price rise above $0.5.
If the rally continues, ADA might as well register a 90% overall bull rally.
Source:
Apart from this, AMBCrypto reported rather that ADA mimicked a pattern it followed in 2020. This indicated a possible increase from mid-November, coinciding with the US elections.
What statistics suggest
AMBCrypto then planned to assess Cardano’s on-chain data to find out if it indicates a trend reversal, which could cause ADA to breakout.
Our analysis of Santiment’s data showed that ADA’s trading volume fell by double digits, while its price fell. Open interest also followed a similar downward trend.
Both metrics, when falling along with an asset’s price, indicate that the likelihood of a bullish trend reversal is high.
Additionally, whale activity around Cardano continued to increase, evident from the stable number of whale transactions over the past seven days.
Source: Santiment
Read Cardanos [ADA] Price prediction 2024–2025
To see if technical indicators also told a similar story, we analyzed ADA’s daily chart. According to Bollinger Bands, ADA was testing its 20-day SMA resistance at the time of writing.
Although the token was in a less volatile zone, a breakout above that resistance could trigger a bull rally.
Source: TradingView
