A bullish pattern has emerged on Cardano’s chart, which hinted at a price pump towards $0.80.
- ADA’s price increased by more than 6% in the last seven days. Market sentiment around ADA turned bullish, but a few indicators were bearish.
While top cryptos like Bitcoin [BTC] were struggling to raise their prices, Cardano [ADA], on the other hand, had different plans. This was the case, as both its daily and weekly charts were green.
In fact, if the latest data is to be considered, then this just might be the beginning of a major bull run.
Cardano bulls are here
CoinMarketCap’s data revealed that ADA was up by more than 6% in the last seven days. In the last 24 hours, the bulls continued to dominate as their daily chart remained green.
At the time of writing, ADA was trading at $0.4151 with a market capitalization of over $14.8 billion. However, this recent price uptick was not enough to earn the majority of investors profits.
As per our look at IntoTheBlock’s data, only 31% of ADA investors were “in the money” at the time of writing. However, this trend might change, as a bullish pattern appeared on the token’s chart.
World of Charts, a popular crypto analyst, recently posted a tweet highlighting a bullish falling wedge pattern.
Notably, Cardano had consolidated inside the pattern since February, and at press time, it was showcasing the potential of a breakout. If that happens, then ADA might touch $0.80 soon.
Is the ADA ready for a breakout?
AMBCrypto planned to take a look at ADA’s on-chain data to find out whether they supported the possibility of a bullish breakout.
Our analysis of Santiment’s data revealed that ADA’s MVRV ratio improved substantially in the last month, which can be inferred as a bullish signal.
Its Velocity registered a spike on the 30th of June, meaning that ADA was used more often in transactions within a set timeframe.
Investors’ confidence in ADA was also high, as its Weighted Sentiment went into the positive zone. This meant that bullish sentiment around the token improved.
Source: Santiment
We then took a look at Cardano’s daily chart to see what market indicators suggest. The Chaikin Money Flow (CMF) registered an uptick, indicating a continued price rise in the coming days.
However, the Relative Strength Index (RSI) went southward. ADA’s price had touched the upper limit of the Bollinger Bands as well, which often results in price corrections.
Source: TradingView
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AMBCrypto’s analysis of Hyblock Capityal’s data revealed that if the bears take over the market, then Cardano’s price might drop to $0.37.
However, if the token manages to sustain its bull rally, then ADA can easily touch $0.80 in July.
Source: Hyblock Capital
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