The price of ADA has increased by more than 4% in the past 24 hours. Most indicators and investor sentiment are bullish on ADA.
Cardano’s [ADA] performance in the last few hours is the best among the top 10 cryptos. This has pushed the price of ADA to a critical level as it is on the verge of breaking out of its bullish mode.
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Cardano prepares for rally
Popular cryptocurrency analyst World Of Charts recently posted a tweet highlighting the bullish pattern that has formed on the ADA chart. According to the tweet, the price of ADA reached the upper trendline of the bullish flag pattern.
A successful breakout above this mark could lead to explosive growth. In fact, the tweet mentioned that a breakout could allow ADA to reach $1 in the coming weeks.
ADA’s price action supports this possibility as it is the biggest gainer among the top 10 cryptocurrencies. According to CoinMarketCap, Cardano is up more than 4% in the past 24 hours.
At the time of writing, ADA is trading at $0.4603 with a market cap of over $16.4 billion, making it the tenth largest cryptocurrency.
The token’s trading volume also surged 74% along with its price, which is generally a positive sign.
AMBCrypto then looked at data from Santiment to see if the indicators supported this price increase. We found that ADA’s funding rate fell slightly on May 9.
This is bullish because price generally moves inversely to funding rates.
Its velocity is high, which means that ADA is used for transactions more frequently in the stated timeframe. Another bullish indicator is the MVRV ratio, which has improved significantly due to ADA’s recent price increase.
What’s Next for ADA?
Apart from this, investor confidence in Cardano has also increased over the past few hours. Based on our observations on Santiment data, the weighted sentiment for ADA is in the positive territory.
This means that the bullish sentiment surrounding the coin has increased.
Its social volume also surged, reflecting the token’s increased popularity in the cryptocurrency space.
Some technical indicators also look optimistic. For example, MACD shows a bullish advantage in the market.
The relative strength index (RSI) is showing an uptick, suggesting further price gains that could see ADA break out into a bull run.
If a breakout occurs, the first test for ADA will be near the immediate resistance of $0.518.
However, there has been a sharp drop in Chaikin Money Flow (CMF), which hints that the bull run for ADA may not continue and ADA may plummet to the $0.43 support level.
