Coinspeaker Cardano (ADA) Price Signals to Imminent Reversal but Major Indicator Points to Potential Downside
As Bitcoin BTC $71 768 24h volatility: 4.5% Market cap: $1.42 T Vol. 24h: $55.60 B price rallied above $71K for the first time since early June this year, Cardano ADA $0.35 24h volatility: 2.9% Market cap: $12.43 B Vol. 24h: $375.42 M price signaled an imminent bullish breakout ahead. In the macro time frame Cardano, an altcoin focused on the Web3 market as a potential Ethereum ETH $2 629 24h volatility: 4.5% Market cap: $315.99 B Vol. 24h: $21.57 B killer, successfully rebounded from a crucial support level above 31 cents, which was established since July to date.
The large-cap altcoin, with a fully diluted valuation of about $15 billion and a daily average traded volume of nearly $400 million, pumped over 2 percent in the past 24 hours to trade about $0.3464 on Tuesday during the early New York session.
However, ADA price is not yet out of the woods, especially after being trapped in a multi-month falling trend since March this year. According to a popular crypto analyst Ali Martinez, ADA price could be gradually following the 2020 fractal pattern, which suggests a potential bullish breakout in mid-November.
The crypto analyst supported his ADA bullish theory with the upcoming US 2024 elections amid the anticipated Fed rate cut next week. With Bitcoin price retesting its all-time high, a potential bullish breakout in the near term will catalyze the highly anticipated altseason.
Additionally, the ADA/BTC pair has been bleeding for the past three years, and the weekly Relative Strength Index (RSI) has been hovering in oversold territory, signaling an inevitable reversal in the near term.
From a technical analysis standpoint, ADA price against the US dollar has been forming a triple bottom, coupled with a rising divergence in the daily RSI, indicating that buyers are gradually gaining ground.
I believe #Cardano $ADA is following a similar pattern to 2020. If history repeats, we might see a pump around November 18—about two weeks after the US elections—and a potential market top by September 2025. pic.twitter.com/GgKWBqzYXU
— Ali (@ali_charts) October 29, 2024
Cardano (ADA) Price Faces a Challenge Period Ahead
Despite Cardano price signaling a major bullish breakout pattern in the weekly time frame, some on-chain experts have issued a cautionary note to crypto investors. According to an analysis by IntoTheBlock, Cardano’s NVT ratio has surged to its highest level since June, indicating a decrease in on-chain activity relative to price growth.
Analysts from IntoTheBlock concluded that Cardano’s price could further underperform in the near term compared to its peers led by Solana and Toncoin.
The Cardano network has received a fair share of criticism in the recent past for lagging in Web3 development. As of this writing, the Cardano network had a total value locked (TVL) of about $218 million and a stablecoins market cap of around $19 million.
Worth noting that the Cardano network only registered around 25K daily active addresses, compared to 6.5 million on the Solana network.
Nonetheless, Cardano’s founder Charles Hoskinson recently expressed high optimism regarding the future of ADA in the web3 space, especially after the recent integration with the BOS bridge to tap into the Bitcoin network.
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Cardano (ADA) Price Signals to Imminent Reversal but Major Indicator Points to Potential Downside
