Cardano was on the verge of breaking above a bull pattern, which could allow it to touch $1.
- ADA’s price increased by more than 4% in the last 24 hours. Most metric sand investor sentiment looked bullish on ADA.
Cardano’s [ADA] performance in the last few hours was one of the best among the top 10 cryptos. This has pushed ADA’s price to a critical level, as it was on the verge of breaking out of a bull pattern.
Cardano prepares for a rally
World Of Charts, a popular crypto analyst, recently posted a tweet highlighting a bullish pattern that formed on ADA’s chart. As per the tweet, ADA’s price reached the upper trendline of a bullish flag pattern.
A successful breakout above that mark could result in explosive growth. In fact, the tweet mentioned that a breakout could allow ADA to touch $1 in the coming weeks.
ADA’s price action backed this possibility, as it was one of the top gains among the top 10 cryptos. According to CoinMarketCap, Cardano was up by more than 4% in the last 24 hours.
At the time of writing, ADA was trading at $0.4603 with a market capitalization of over $16.4 billion, making it the 10th largest crypto.
The token’s trading volume also surged by 74% along with its price, which is usually a positive signal.
AMBCrypto then took a look at Santiment’s data to see whether metrics were supporting this price uptick. We found that ADA’s Funding Rate declined slightly on the 9th of May.
This was bullish, as prices generally move in the opposite direction from funding rates.
Its velocity was high, meaning that ADA was used more often in transactions within a set time frame. Another bullish metric was the MVRV ratio, which improved sharply thanks to ADA’s recent price uptick.
Source: Santiment
What’s next for ADA?
Apart from these, investors’ confidence in Cardano also increased in the last few hours. As per our look at Santiment’s data, ADA’s Weighted Sentiment went in the positive zone.
This meant that bullish sentiment around the token increased.
Its Social Volume also spiked, reflecting a rise in the token’s popularity in the crypto space.
Source: Santiment
A few of the technical indicators also looked optimistic. For instance, the MACD displayed a bullish advantage in the market.
The Relative Strength Index (RSI) registered an uptick, indicating a further increase in price, which might allow ADA to break above the bull pattern.
Read Cardano’s [ADA] Price Prediction 2023-24
If a breakout happens, then the first test of ADA will be near its immediate resistance at $0.518.
However, the Chaikin Money Flow (CMF) registered a sharp downtick, which hinted that ADA’s bull rally might not last and ADA might plummet to its support at $0.43.
Source: TradingView
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