The bulls are beginning to win back the market today, with the global crypto market capital climbing back towards the $400,000,000,000 mark.
As money begins to flow back into the space, we could be about to see Cardano make a strong return back into the game - with increasing support, largely from South Korea at this moment in time, lifting the alt-coin off its 2,900 Sats support.
In the 1D chart above, we can see that ADA has been gradually consolidating inside a large bullish pennant pattern over the course of its lifespan, with decreasingly lower lows and lower highs.
Over the 3 weeks, ADA has been pinned to the central support (2,900 Sats) since tumbling from the 0.382 fib level (4,150 Sats) at the start of this month.
A sudden surge of investment however has managed to breathe some life back into the project, with 50 and 100 EMAs both beginning to converge above the 200 EMA over 30min candles. This is a strong indication that market sentiment is turning bullish for this alt-coin.
Other indicators are also favouring this trend reversal;
- MACD averages are high above the signal line and holding.
- RSI was giving us an overbought signal earlier, during the peak of this bull run, but has now retracted back into the upper channel area.
- Looking at the Accumulation/Distribution line, we can see a clear divergence between money flow and price action trend in the lead up to the bullish outbreak. This was an early sign that support was beginning to gather behind the asset.
But while this bullish momentum is looking promising, there could be a potential danger of a bearish H&S pattern forming over the 1D graph above, if the asset fails to break clear of the 3,500 Sats mark for a second time.
This is a big IF. With so many updates ahead, including the launch of the highly anticipated coin staking function, plus a solid team of academics driving the project forward, there really is only one way this coin is going.
Cardano (ADA) Price Prediction
*All return on investments measured from 2,900 Sats support level.
Price target 1: Retracement to the 0.5 fib level at 3,500 Sats (20.69% ROI)
Price target 2: Continuation to 0.382 fib level at 4,150 Sats (43.10% ROI)
Price target 3: Eventual peak towards the 0.236 Sats level at 5,000 Sats (72.41% ROI)
This article appeared first on Cryptovest
