Cardano (ADA) Eyes 100% Rally: Bullish Wedge Pattern and On-Chain Analysis
Cardano (ADA) has been gaining bullish momentum, with the potential for a significant price increase. A bullish falling wedge pattern has formed on the token’s daily chart, suggesting a possible 100% rally if a breakout occurs.
On-Chain Analysis Supports Bullish Outlook
Several on-chain indicators support a bullish outlook for Cardano. The MVRV ratio has entered the positive zone, indicating a potential for further price appreciation. Additionally, the Open Interest and Social Dominance have increased, suggesting growing investor interest.
However, the NVT ratio has risen sharply, indicating that Cardano may be overvalued. This, combined with the “greed” level on the fear and greed index, suggests that a potential price correction might be imminent.
Technical Indicators Mixed
While the MACD has displayed a bullish crossover and the RSI has registered an uptick, the Bollinger Bands suggest that Cardano’s price may be entering a less volatile zone. This could potentially pause the token’s bullish momentum.
Also Read: Bitcoin’s 2024 Plunge: 30% Drop in Open Interest Reveals Over-Leveraged Market
Potential Price Scenarios
If the bulls maintain control, Cardano could break out of the falling wedge pattern and target $0.45 before reclaiming its February high. However, if the bears take control, the token could drop to $0.28.
Cardano’s bullish outlook is supported by the formation of a bullish falling wedge pattern and positive on-chain indicators. However, the potential for a price correction cannot be ruled out, especially given the overvaluation indicated by the NVT ratio and the “greed” level on the fear and greed index. Investors should closely monitor these indicators and the overall market sentiment to make informed decisions.
