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Cardano price could rise 30% as crypto markets take to a revival course

  • Cardano price action has consolidated into a descending triangle, but a reversal seems likely.
  • ADA could make a 30% climb if it manages a break and close above $0.5410.
  • A break and close below $0.4668 would invalidate the bullish thesis. 

Cardano (ADA) price continues to consolidate below a descending trendline, a bearish technical formation that extended the choppy altcoin market. However, this outlook appears to be changing as cryptocurrency markets take to what appears to be a revival course. 

Also Read: Cardano price could rise 15% as shark and whale wallets resurface

Cardano could bottom out around now

Cardano (ADA) price downtrend has lasted since mid-December, falling around 30%. The price may have bottomed out as the altcoin confronts the blockade represented by the downtrend line. Increased buying pressure could see ADA price overcome the trendline to confront the resistance confluence between the 50-day Simple Moving Average (SMA) and the horizontal line at $0.5419.  

Key levels to watch beyond this level include the $0.5908 roadblock, 10% above current levels, or  higher at $0.6412. In a highly bullish case, the gains could see the Cardano price complete the 30% climb to $0.6800.  

ADA/USDT 1-day chart

On-chain metrics to support bullish outlook for Cardano 

Based on Santiment's social dominance and social volume metrics, the number of mentions for the ADA token is increasing relative to a pool of other tokens within crypto-relatd social media. These add credence to the bullish thesis.

ADA Santiment: Social volume, social dominance

Also, the spike seen in the volume metric, combined with that in the number of whale transactions involving movements of more than $100,000 worth of ADA shows traders have grown active, which could bode well for ADA price. 

ADA Santiment: Whale transaction count, volume

On the other hand, a rejection from the descending trendline could see ADA price continue below the foothold of the trendline, potentially testing the $0.4668 bottom, nearly 10% below current levels. 

Author

Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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