The cryptocurrency Cardano (ADA) has faced a difficult period, but a bull technical pattern suggests the possibility of an imminent price recovery. The on-chain analysis and historical patterns indeed indicate a potential breakout for the ADA token.

Let’s see all the details in this article.

Cardano aims for the breakout: what to expect in the coming weeks from the price of the ADA cryptocurrency?

In recent months, the cryptocurrency market has experienced a bear phase, with many altcoins seeing their values decrease. Among these, Cardano (ADA) has been significantly impacted, recording a contraction that has concerned investors.

However, despite the difficulties, Cardano shows signs of consolidation within a bull pattern that could lead to an important rally, pushing the token’s price to new levels.

The current technical framework of Cardano has been analyzed by various experts and specialized platforms, highlighting the possibility of a trend reversal.

In particular, the data published by the analyst of criptovalute known as “World of Charts” suggests that a bull pattern, formed in December 2023, could lead to a significant growth in the price of ADA in the coming months.

This pattern, which partly resembles the one seen in 2020, indicates the possibility of a rally similar to the one that occurred then.

According to the data from InToTheBlock, the number of bear investors has slightly surpassed that of bull investors in the last week.

This slight prevalence of the “bears” could be one of the factors behind the latest price correction of Cardano, which has seen a decline of more than 4% in the last 24 hours.

At the price of $0.3438, ADA has become a point of observation for those looking for signals of a trend reversal.

Due to the recent decline, only 12% of ADA addresses remain in profit, a significant percentage for a project of such magnitude.

This situation, however, could represent an opportunity for investors who are looking at the long term.

In other words, a potential breakout could trigger a rapid recovery, bringing the price back above the $0.5 threshold and increasing the profit for numerous addresses.

The importance of the bull pattern and the similarities with 2020

The price model that ADA is currently following is particularly interesting for analysts, as it resembles a pattern already seen in 2020, before a significant price surge.

This similarity is fueling hopes for a repetition of the historical dynamic. Especially with the approach of significant events like the mid-November U.S. elections, which could influence market sentiment.

ADA could indeed register a 90% increase if the rally is confirmed. The pattern suggests a potential breakout in the coming weeks, with a consequent bull move that would push the price beyond $0.5.

The elections and other macroeconomic factors could have a positive impact on the cryptocurrency market, providing the necessary support for a significant ADA bull rally.

Furthermore, the on-chain data of Cardano reveals that the trading volume of the token has decreased alongside the drop in price, along with a reduction in open interest.

This combination of data suggests that the bear trend might be close to a reversal. The decrease in both of these metrics, when it occurs alongside the price drop, often precedes a recovery.

In addition, the activity of whale on Cardano, indicated by the stable number of transactions recorded in the last seven days, suggests that there might be an accumulation by larger investors, a positive signal for the future of the token.

The stability of whale transactions is generally seen as a indicator of confidence, suggesting that heavyweight investors believe in a medium or long-term recovery of ADA.

Technical indicators: Cardano tests the 20-day SMA resistance

On the technical level, the analysis of the daily chart of ADA reveals that the token is testing its 20-day SMA resistance, as shown by the Bollinger Bands.

Even though it is in a zone of moderate volatility, a breakout above this resistance could trigger a bull rally, giving momentum to a possible price increase.

In conclusion, although the cryptocurrency market is in a bear phase, the prospects for Cardano seem promising.

The technical signals and on-chain metrics indicate the possibility of a breakout, which could represent an opportunity for investors.

With a potential growth of up to 90%, ADA is preparing for a possible rally that could change the current scenario and bring the token to new levels.