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ADA Sets Sights on $1.5 and Beyond as Key Trends Emerge

ADA may be poised for a significant rally in the upcoming weeks, with some analysts predicting increases of over 130%.

In a post on X dated March 31, the pseudonymous analyst RJT.WAGMI, who has 124K followers, highlighted that Cardano seems to be establishing a classic “ABCDE” triangle pattern, a consolidation structure frequently observed prior to major price movements.

ADA eyes rally to $1.5 and beyond as key patterns emerge - 1
Source: X/RJT_WAGMI

This pattern involves price movement through five distinct waves labeled A to E within a tightening range, usually concluding with a powerful directional move.

The analyst noted that ADA is currently situated in the midst of the C wave, a downward phase, but after completing the D and E waves, a significant upward breakout could occur.

RJT mentioned that a bounce from the 0.5–0.618 Fibonacci retracement zone might act as a springboard toward a price target of $1.5.

“This is where OGs buy,” he remarked, suggesting that seasoned traders often accumulate during the formation of this pattern.

Another analyst, CW, shared a similar viewpoint, observing that ADA is adhering to its long-term trend while resting near the lower boundary of a symmetrical triangle pattern—a traditional consolidation setup where price condenses between converging trend lines.

According to this analyst, once ADA breaches the convergence zone, there would likely be minimal resistance until it reaches $1.9. “Everything will start in an instant,” he noted, emphasizing the ongoing net buying as a bullish indicator.

Data from CoinGlass indicates that investors have been predominantly accumulating the altcoin, with net outflows appearing most days since March 3. This trend signifies that more tokens are being withdrawn from exchanges than deposited, reflecting strong investor confidence in its long-term viability.

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Source: CoinGlass

Another strong indicator of a bullish outlook comes from analyst Master Kenobi, who compared ADA’s current price action to its behavior in August–September 2024. During that period, the token experienced a robust rally following an extended consolidation phase.

With ADA not printing a new low since its dip to $0.49 on February 3, similar to the previous cycle, he speculates a comparable breakout could occur in May, possibly driving the price up to $2.5.

However, as of the latest update, ADA remains under bearish pressure, trading down 6.2% over the past day at $0.64, with a market cap of $23.3 billion.

ADA Technical Analysis

On the 1-day/USDT price chart, the 50-day moving average is positioned above the 200-day moving average, creating a bullish setup that indicates sustained momentum and supports the case for a potential breakout.

ADA eyes rally to $1.5 and beyond as key patterns emerge - 3
ADA price, 50-day and 200-day SMA — March 31 | Source: crypto.news

The Supertrend indicator has also fallen below the price level and changed to green, indicating a potential trend reversal could be on the horizon.

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ADA Supertrend and RSI chart — March 31 | Source: crypto.news

The Relative Strength Index, currently at $3.9, appears ready to approach oversold levels, which may incite bulls to intervene and drive prices higher.

Additionally, ADA’s MVRV Z-score has decreased to 0.0077—its lowest point since early March—indicating that the average holder is nearing a breakeven point. This juncture often signifies a reduction in selling pressure and the commencement of accumulation, raising the chances of a price rebound if market sentiment improves.

However, current data from IntoTheBlock reveals that ADA’s price correlation with Bitcoin stands at 0.79, indicating a strong positive relationship over the past 30 days. Thus, ADA’s next move appears closely tied to Bitcoin, which is currently in a downtrend amid President Donald Trump’s U.S. reciprocal tariffs.

At the time of writing, Bitcoin (BTC) was trading at $81,484, having declined roughly 7% over the last 7 days.

Disclosure: This article does not constitute investment advice. The content and materials presented on this page are for educational purposes only.

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