During Wednesday’s Asian market session, the crypto market showed a slight uptick as Bitcoin price showed sustainability above $90,000. The relief rally bolstered most major altcoins, including ADA, to seek support amid the current correction trend. The downward trajectory in Cardano’s price shows the formation of a well-known continuation pattern called “Flag” within the health retracement range for Fiboonaic supports.
By press time, the ADA price trades at $1.009 with an intraday gain of 5%. According to Coingecko, the asset’s market cap stands at $35.5 Billion, while the $3.1 Billion.
- The flag formation hints at a temporary pullback for buyers before the next leap.
- With today’s 5% jump, the Cardano price teases a bullish breakout from the current correction.
- The momentum indicator RSI back above 50% accentuates the market buyers regaining control over the ADA coin.
Repetitive Pattern Puts Cardano Price for 50% Surge
Since last weekend, the Cardano price has shown a notable correction from $1.15 to $0.99, for a 14.2% loss. The retracement following a broader market pullback indicates a temporary breather for buyers to reenergize after the last pump.
Supporting the bullish thesis, the ADA price shows the formation of a ‘bull flag’ pattern in a 4-hour time frame chart. The chart setup typically occurs after a strong price movement ( the flagpole) and represents a consolidation phase ( Flag) before the trend resumes in the same direction.
Since early November, the Cardano price has formed a similar pattern twice, which led to a dynamic rally of approximately 50-52%. Thus, the potential breakout from the overhead trendline could drive a rally to $1.35-$1.5.
Here’s Why ADA Price Is Poised for Major Reversal
In a recent tweet renowned analyst Ali Martinez highlights the Cardano whale bought over 130 Million ADA amid the recent price dip. This accumulation indicates big players’ confidence in a potential rebound of the ADA price.
#Cardano whales bought over 130 million $ADA during the recent price dip! pic.twitter.com/VHg93o3WP5
— Ali (@ali_charts) November 27, 2024
In addition, the altcoin holding above 0.236 Fibonacci retracement level, suggests a healthy pullback for buyers to recuperate bullish momentum.
Source: https://www.cryptonewsz.com/cardano-price-retracement-set-leap-1-5/