• 19 June, 2024
Market News Price Analysis

Cardano (ADA) Nears Pivotal Reversal, Signals Potential Bullish Surge

Cardano (ADA) is at a critical reversal zone, with its price approaching a critical reversal zone. Historically, ADA has reversed multiple times between the $0.422 and $0.432 levels, often triggering substantial double-digit gains. The most recent surge in mid-May saw ADA reach a local high of $0.511. As of press time, ADA is trading at $0.456 marking a 0.55% slight increase in the past day.

Source: TradingView

A significant bullish divergence forms as Cardano’s price reaches a lower low while the Relative Strength Index (RSI) indicates a higher low. This divergence suggests increasing momentum that has not yet been reflected in ADA’s price, signaling potential upward movement.

Since establishing a key swing low on June 2, ADA has experienced a 5% rise, indicating possible continued growth. ADA must surpass the immediate resistance at $0.465 to confirm this bullish trend and achieve a higher high relative to the $0.477 swing point. If successful, this move indicates a break in the bearish market structure, pushing ADA to revisit the $0.496 and $0.510 resistance levels.

Another bullish indicator is the RSI’s recent move above the 50-level on the 4-hour chart. This breach, the first since May 23, suggests that sustained momentum above this barrier could favor bullish sentiment, potentially leading to an 11% gain, moving from the current $0.455 to $0.511.

Source: TradingView

Supporting this technical outlook, the renowned analytical platform Santiment, reveals that the Network Realized Profit/Loss (NPL) indicator noted a significant capitulation event on May 30. These events occur when ADA holders sell at a loss to avoid further declines, providing long-term investors with opportunities to accumulate at lower prices. Historically, such steep NPL drops have preceded substantial ADA price rallies, aligning with the forecasted 11% rise from a technical standpoint.

Analyst Predicts HBAR Breakout: “Moontime” Urges Caution Against Hype
Source: Image by Santiment

However, Cardano founder Charles Hoskinson has hinted at future engagement with Tesla CEO Elon Musk. Responding to an inquiry on X, Hoskinson revealed plans to approach Musk, indicating he is saving this “card” for a significant opportunity. Such a collaboration could profoundly impact the crypto industry, particularly for Cardano, potentially driving ADA prices to unprecedented levels with Musk’s endorsement.

Investors are advised to closely monitor these developments and immediate price levels to determine ADA’s next move. The coming days could be crucial in deciding whether Cardano could break its bearish trend and embark on a bullish trajectory.

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