The Cardano price plunged 1.35% during the Wednesday market session, currently trading at $0.345. The slight downtick signals the continuation of its sideways trend intact since June 2024. Wil. The renewed recovery pushed the ADA price escape from the current consolidation.
Is Cardano Price Ready to Escape Its 4-Month Consolidation?
Cardano, the layer 1 cryptocurrency, has showcased a sideways action for the past four months, projecting its sustainability above the $0.03 level. The renewed bullish momentum at the bottom support has shifted the prevailing trend sideways, projecting a change in market sentiment.
An analysis of the daily chart shows this consolidation as forming a symmetrical triangle pattern. Theoretically, the pattern drives a lateral movement resonating within two converging trendlines, recuperating the prevailing momentum for the next breakout.
By press time, the Cardano price had traded at $0.353 while boosting its market cap to $12.37 billion. If the pattern acts as a suitable accumulation zone, the ADA price would rise 11.5% to challenge the overhead trending at $0.4.
The 200-day exponential moving average coinciding close with the overhead trendline creates a high supply zone. Thus, a potential breakout from the overhead trendline will signal the end of this multi-month consolidation, paving the way for higher recovery.
The post-breakout rally could drive the 15% up to challenge $0.457 resistance, followed by 0.52.
For detailed prediction, check out our top layer 1 crypto article.
ADA Whales Accumulate as MVRV Ratio Signals Potential Bottom Formation
According to Santiment data, the 30-day MVRV ratio recently dropped below the -5.72k. Typically, a negative value suggests that most short-term traders are operating at a loss, which may lead them to exit the market.
This scenario often attracts long-term buyers. Historically, when the MVRV ratio dips below -5%, it has been associated with forming local market bottoms.
Moreover, Cardano’s large holders, with wallets holding between 1 million to 10 million coins, have recently increased their accumulation from 5.57 billion to 5.77 billion ADA, registering a 3.59% growth. This increase in holdings suggests growing confidence among major investors, signaling potential bullish sentiment and a belief in Cardano’s long-term value.
Such accumulation by large holders often precedes upward price movements
On the contrary, if the Cardano price crashes from the overhead trendline, the consolidation will continue for the coming weeks or months.
Frequently Asked Questions (FAQs)
Cardano is forming a symmetrical triangle pattern, which has been the main driver of its 4-month consolidation
The 30-day MVRV ratio dropping below -5.72% signals that many short-term traders are at a loss, potentially attracting long-term buyers and forming market bottoms.
A breakout above the $0.4 resistance and the 200-day exponential moving average could drive Cardano to challenge the $0.457 resistance, followed by $0.52.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/is-cardano-price-ready-to-break-free-4-month-stagnation/
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