- The price of ADA has risen by more than 4% in the last 24 hours.
- Most surface sand investor sentiment seemed bullish on ADA.
Cardano (ADA) Its performance over the past few hours has been one of the best among the top 10 cryptocurrencies. This pushed the price of ADA to serious levels right before breaking out of the bullish pattern.
Cardano prepares for a rally
Renowned cryptocurrency analyst World Of Charts recently posted the following: Twitter Highlights the bullish pattern formed on the ADA chart. According to the tweet, the price of ADA has reached the upper trendline of a bullish flag pattern.
A successful break above this level could result in explosive growth. In fact, the tweet mentioned that ADA could reach $1 in the coming weeks if a breakout occurs.
ADA’s price action supported this possibility as it was one of the best gains among the top 10 cryptocurrencies. According to CoinMarketCapCardano is up more than 4% in the last 24 hours.
At the time of this writing, ADA is trading at $0.4603, with a market capitalization of over $16.4 billion, making it the 10th largest cryptocurrency.
The token’s trading volume also surged 74% along with its price, which is generally a positive sign.
AMBCrypto then looked at Santiment’s data to see if the indicators supported this price rise. On May 9, we saw a slight decrease in ADA’s funding rate.
This was optimistic, as prices typically move in the opposite direction of funding rates.
It was faster, meaning ADA was used more often for transactions within a set time frame. Another bullish indicator was the MVRV ratio, which improved sharply thanks to ADA’s recent price rise.
Source: Santiment
What’s next for the ADA?
In addition to this, investor confidence in Cardano has also increased over the past few hours. Looking at Santiment’s data, the ADA’s Weighted Sentiment is in positive territory.
This means that optimistic sentiment towards the token has increased.
Social volume also surged, reflecting the token’s growing popularity in the cryptocurrency space.
Source: Santiment
Some technical indicators also looked optimistic. For example, MACD has a bullish lead in the market.
The Relative Strength Index (RSI) is on the rise, indicating further price upside, which could allow ADA to break out of its bullish pattern.
read Cardano (ADA) Price Prediction 2023-24
If a breakout occurs, ADA’s first test will be near the immediate resistance at $0.518.
However, Chaikin Money Flow (CMF) recorded a sharp decline, suggesting that ADA’s rally may not last and that ADA may plummet to the $0.43 support level.
Source: TradingView