Cardano Price Prediction As Buyers Escape 16-Month Correction

The recent performance of the Cardano coin has mirrored the broader altcoin market’s bullish trend that persisted from October into November. Thus, in the past three weeks, this altcoin recorded substantial growth, with its price escalating from $0.24 to $0.31—a leap of 32.5%. This rally culminated in a breakthrough of a long-established descending trendline, hinting at a possible trend reversal for ADA.

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Trendline Breakout S.ets $ADA for Bullish Trend

• A bullish breakout from the long-coming resistance trendline hints at an early sign of the correction phase ending.
• A 50–and–100–day EMA nearing a bullish crossover provides an extra edge to market buyers
• The intraday trading volume in the ADA coin is $499 Million, indicating a 39% gain

Source- Tradingview

The Cardano price decline, which began in September 2021, had moderated into a more gradual descent since June 2022, marked by a pattern of higher highs and higher lows. This trend has been tracked in the daily chart by a downward-sloping trendline over the past 16 months, with two notable price rejections from this resistance level, indicating active selling during bullish attempts. 

However, the recent market recovery has propelled the ADA price to rebound from a key support level of $0.24, resulting in a breakout on November 2. This shift suggests a change in market behavior from selling on rallies to buying the dips, potentially offering buyers a new support level to launch further advances. 

Currently, the ADA price is trading at $0.313 with a slight retreat of 3%, retesting the recently breached resistance-turned-support trendline. If the pattern holds true, the subsequent target could be the previous highs that interacted with the descending trendline, projecting a rise to $0.45 and potentially extending to $0.68.

ADA vs BTC Performance

Source: Coingape| Cardano Vs Bitcoin Price 

In a comparison analysis, the Bitcoin price has been outperforming the Cardano coin for over a year now. While the ADA price has traded majorly sideways, the BTC price shows a steady rise with new higher hows and lows.

• The Average Directional Index: The ADX price at 42, signals that the bullish momentum may be waning and therefore, investors should monitor the asset sustainability before establishing new positions.
• Exponential Moving Average: The price rise above the 200-day EMA could serve as an additional indicator of a trend reversal, lending support to the bullish outlook.