Cardano (ADA) has been showcasing a bullish macro outlook, suggesting the crypto is primed for a significant price jump upon breaking out from its current symmetrical triangle pattern.
However, for ADA to achieve this rally, support from broader market conditions, in addition to the investors who are seemingly preparing for a jump, will be essential.
Cardano Investors Are Optimistic
Cardano’s Mean Coin Age (MCA) is once again on the rise, signaling renewed optimism among holders. An uptick in MCA indicates that investors are choosing to hold onto their ADA rather than selling, a trend that reinforces the asset’s resilience and long-term potential for growth.
This shift in sentiment is crucial for ADA’s recovery prospects. By holding rather than selling, investors are helping to stabilize the market and reduce selling pressure, creating an environment conducive to upward price movement.
The Relative Strength Index (RSI) for Cardano is showing gradual improvement, reflecting growing buying interest. However, it has yet to flip the neutral 50.0 level into support, a key indicator of strong bullish momentum. Until this happens, ADA may face challenges in achieving sustained growth.
Flipping the RSI above 50.0 would signal that bullish momentum is gaining strength, providing the foundation for price growth. Currently, however, ADA remains in a precarious position, where weak momentum could hinder its recovery efforts.
ADA Price Prediction: Awaiting a Breakout
Cardano’s price is trading within a symmetrical triangle, a technical pattern that suggests a potential 64% rally upon breakout. If realized, this would push ADA’s price to a target of $1.74, representing a significant upside for investors.
Confirmation of the breakout would require Cardano to flip $1.10 into support. To reach the $1.74 target, ADA would then need to breach the next resistance at $1.32, a key milestone in its recovery trajectory.
However, failure to achieve a breakout could cause ADA’s price to linger closer to the $0.94 support level. Losing this critical support would invalidate the bullish outlook and could send Cardano down to $0.86 or lower, raising concerns among investors.
Disclaimer
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