- Market sentiment around ADA continues to remain bearish.
- Apart from the bullish pattern, several indicators are pointing to an upswing in prices.
Cardano [ADA] The token took a big hit in April, disappointing investors over the past few months, but a bullish pattern has emerged on the token’s daily chart, which could lead to a trend change in the coming days.
Cardano’s bloody tragedy
April brought bad news for the token, as its price crashed on the 12th of the month. To be precise, the token’s value fell by over 40% during the crash.
Since then, the token hasn’t been able to recover well from the setback. data It became clear that over 60% of investors had lost their capital and suffered losses.
As the price crashed, people started talking about ADA more, as evidenced by the surge in social volume since April.
The weighted sentiment remains mostly in the negative zone, suggesting that bearish sentiment towards the token prevails.
Source: Santiment
However, a bullish descending wedge pattern emerged on the token’s daily chart, raising hopes of a recovery in the coming days. Since the price drop, the token has remained stable within this pattern.
At the time of writing, we are on the verge of breaking out of this pattern and a full recovery is expected soon.
Source: TradingView
Can Cardano Recover?
AMBCrypto then analyzed ADA’s on-chain metrics to see if they supported a possible recovery, and found that the token’s MVRV ratio dropped sharply following the price crash.
However, the indicators improved in the following weeks, suggesting a possible upswing in the coming days. Additionally, ADA velocity also remained high.
This means that ADA will be used more frequently in transactions within set time frames.
Source: Santiment
As the indicators were looking bullish, AMBCrypto checked the daily chart of Cardano to see if the technical indicators were also suggesting a bullish trend, and found that Chaikin Money Flow (CMF) was recording a promising upswing.
This indicates that the price is likely to rise. However, the Relative Strength Index (RSI) may take a different path and limit ADA’s upside.
Source: TradingView
If ADA price gathers bullish momentum in the coming days, it will be crucial for the token to rise above $0.467 as liquidations will surge.
Whether it’s realistic or not, ADA market capitalization (BTC equivalent)
Increased liquidations often lead to price corrections.
A successful breakout above the target would see ADA reach $0.50, marking the first step towards a full recovery. At the time of writing, ADA is transaction Its market cap is over $16 billion, at $0.4609.
Source: Highblock Capital
