Cardano (ADA) faced a significant drop in its price during April, but there are indications of a potential rebound. Key indicators such as MVRV and Chaikin Money Flow point towards a bullish ride in the future. In this article, we will explore the bullish patterns on Cardano’s daily chart and analyze the possibility of ADA recovering from its crash in April.
ADA experienced a sharp decline in price on April 12, losing over 40% of its value. Data from IntoTheBlock reveals that more than 60% of investors were in a losing position. Following the crash, ADA became a popular topic of discussion, leading to an increase in social volume.
Despite the negative sentiment among investors, there is hope for ADA’s recovery due to the emergence of a wedge pattern on its daily chart. Wedge patterns typically indicate a potential reversal or continuation of price direction. ADA has consolidated within this pattern since its price drop in April. Currently, ADA is attempting to hold within this pattern, suggesting a possible recovery in the near future.
Another positive sign for ADA is the MVRV metric. Although it plummeted during the April crash, it has shown improvement in the following weeks. Additionally, ADA’s MVRV remained high, indicating frequent usage of the token in transactions within a specific timeframe.
The Chaikin Money Flow (CMF) also displayed encouraging growth, suggesting a high likelihood of a price increase. However, the Relative Strength Index (RSI) moved in the opposite direction, which may hinder ADA’s upward movement.
At present, ADA is trading at $0.4554, experiencing a 1% decline in the past 24 hours. The market capitalization has also decreased by 1% to $16.2 billion, while trading volume has increased by 70.6% to $416 million. The surge in trading volume indicates continued investor interest in acquiring the cryptocurrency.
In the upcoming days, ADA needs to surpass the $0.467 mark to gain bullish momentum, as liquidation would significantly increase. Price corrections typically follow a rise in liquidation. The first step towards ADA’s price recovery would be a break above the $0.467 to the $0.5 level.
While ADA is poised for a major price correction, there has been a substantial increase in whale transactions. Investors holding between 100 million and 1 billion ADA tokens have increased their holdings by approximately 11% in the last 30 days. This trend suggests that major investors are buying the dip in anticipation of a future price recovery.
For more information on Cardano, check out our recommended resources such as the Buy Cardano Guide, Cardano Wallet Tutorial, and the 24-hour Cardano Price. Stay updated with the latest Cardano news to stay informed about developments in the cryptocurrency.