- After a significant correction, ADA price rose over 1.5% in 24 hours
- Indicators looked bullish, but market indicators suggested otherwise
cardano [ADA] recorded There was a significant price correction last week, with the token price dropping to $0.42. However, the scenario changed in the last 24 hours as the daily chart turned green. So, the question is – does this signal the beginning of a bull market? Is this something Cardano has been planning for weeks?
Cardano follows historical trends
ADA did not start May on a good note as the bears took control of the token’s price. However, things quickly changed as the cryptocurrency started trading up almost 2%. At the time of writing, it is $0.4677, with a market capitalization of over $16.6 billion.
Now, this may not seem bullish at first glance, but there’s more to the story here. Ali, a popular crypto analyst, recently shared the following: Tweet Highlights how ADA is mimicking 2019 price action.According to the same, altcoins are Consolidating within a parallel channel, signaling the end of the 2019 bear market.
At the time, Cardano broke through the channel with a 75% surge, followed by a 56% price correction, and the market prepared for a massive 4,095% bull run.
ADA appears to have started a similar move in 2023, with the cryptocurrency consolidating within a parallel channel and subsequently posting a 72% surge. If the altcoin finally finishes its correction on the charts, we can expect ADA to start another bull run. If that happens, cryptocurrencies will soon reach new heights.
There is a high possibility of a big rebound, so this may be the best time to accumulate. Nevertheless, the total number of Cardano holders has remained flat for the past three months, a sign that new investors did not buy his ADA.
Source: Santiment
What do the indicators show?
AMBCrypto then analyzed Santiment’s data to see if the indicators also suggested history repeating itself. The bullish indicator was his MVRV ratio, which recorded a sharp increase.
Whale activity around Token also remained high last week. Additionally, Cardano’s open interest increased along with the price. This indicates that the bullish uptrend is likely to persist.
Source: Santiment
However, unlike the aforementioned indicators, most technical indicators appeared bearish. For example, the Money Flow Index (MFI) recorded a sharp decline. Chaikin Money Flow (CMF) followed a similar trend.
These suggest that ADA may not be able to start a major bull market, at least in the short term.
Regardless of whether it is realistic or not, this ADA market capitalization in BTC equivalent
On the contrary, the MACD showed a bullish crossover. When a bull market occurs, more investors can take advantage of it.
According to IntoTheBlock, this was true as only 35% of ADA investors had profited at the time of writing. data.
Source: TradingView
