Coin World reported:
The trading volume of ADA has sharply increased while the price has fallen. Some indicators suggest a bull market on the chart.
Like most cryptocurrencies, Cardano [ADA] has performed well in the past 24 hours, with its daily chart turning green a few days later. However, there may be better news, especially if certain conditions are met, as ADA may be on the verge of a breakthrough in the bull market.
Let’s take a look at what ADA needs to do to stay optimistic on the price chart.
Cardano sees more green
Before the recent price increase, Cardano’s price had dropped by over 9% in just 7 days. In the past 24 hours, the situation has improved, with the token price rising by over 6%.
At the time of writing, Cardano’s trading price is $0.3552, with a market capitalization of over $12.7 billion.
However, data from IntoTheBlock shows that over 75% of investors still don’t have any money, accounting for 3.37 million ADA addresses.
It is also worth noting here that the price drop has had a negative impact on the MVRV ratio. Its trading volume has increased during the price decline, which is usually considered a negative signal.
However, as a bull market appears on the token’s 12-hour chart, all these indicators and market conditions could reverse.
According to AMBCrypto’s analysis, Cardano’s price has been consolidating in a descending wedge pattern since March. At the time of writing, it is about to test the lower boundary of the pattern.
To kickstart a bull market for ADA, it needs to draw 3-4 green candles. If this happens, it would not be surprising to see a significant increase in ADA’s long positions, allowing it to retest the high point of March in the coming weeks or months.
The probability of ADA’s breakout
When AMBCrypto looked at Hyblock Capital’s data, an interesting relationship can also be seen.
According to our analysis, whenever ADA’s cumulative settlement level Delta turns green, ADA’s price rises. Similarly, when the indicator turns red, the token’s price falls.
At the time of writing, although the indicator is red, its numbers are declining. In simple terms, ADA may soon start a bull market on the chart.
Similarly, the Relative Strength Index (RSI) has risen after touching the oversold zone, indicating a bullish outlook.
Is your portfolio in the green? Check out the Cardano profit calculator.
Nevertheless, the remaining indicators are bearish. For example, the MACD shows a bearish cross.
Finally, the Chaikin Money Flow (CMF) is moving downwards and is also below the neutral mark. This may limit ADA’s price from rising in the next few days or even weeks.
