The price of Cardano (ADA) has seen a decline in recent weeks. After peaking at a 23-month high of $0.808 on March 11, ADA’s price has fallen over 28% and is now hovering just below the $0.60 level. Notably, Cardano has underperformed compared to its peers, falling to 10th position among the largest cryptocurrencies by market capitalization.
However, a crypto analyst known as Trend Rider (@TrendRidersTR) on declared that ADA is showing clear signs of a bull run, based on technical analysis of its Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers.
What this means for Cardano price
According to Trend Rider’s recent post on
The analyst emphasized: “ADA’s undeniable bull run is here. With its second RSI crossover in history, it is reminiscent of the time when prices rose from $0.05 to $3. This rare event, which marks a potential trend shift when the RSI crosses its SMA, has flawlessly mirrored shifts in previous cycles predicted at an early stage.”
Trend Rider’s analysis focuses on the RSI, a momentum oscillator that measures the speed and change of price movements, and its crossover with the SMA, a common trading signal interpreted as a potential bullish or bearish market indicator.
The post describes three critical phases in Cardano’s recent market activity. The first crossover occurred shortly after the start of the COVID-19 pandemic, when ADA was trading at $0.19, marked by a significant price increase following the crossover event.
At the end of the 2021 bull run, a bearish crossover occurred that ushered in a prolonged bear market. “Notice how perfectly the bearish crossover anticipated the bear market. This is an extremely strong validation for this indicator. This makes it very relevant to predict long-term ADA cycles,” the analyst said.
The second bullish crossover of the RSI with the SMA took place in October and November 2023. This event was initially rejected by the market a few months earlier, lending credence to the indicator’s reliability in predicting long-term market trends.
Trend Rider concludes: “The RSI and its SMA crossovers are an extremely reliable source for identifying early-stage ADA bull runs and bear markets.” This analysis suggests that Cardano is currently entering a bull market phase, reinforcing the bullish outlook for ADA.
Additionally, the analyst cautioned that the one-month chart reflects a macro perspective for holders: “each candle represents one month, so you can expect huge volatility within each candle.” Furthermore, he warned of the inherent risks of crypto investments, noting the importance of a personalized investment strategy to deal with potential market volatility and unforeseen events, often referred to as ‘black swan’ events.
“VERY IMPORTANT: Personally, these macro charts help me see the bigger picture, but I always use my own process to secure profits and protect myself from any black swan event,” Trend Rider added.
If history is any indication, the current patterns could mark a lucrative phase for Cardano holders, but as always in crypto markets, caution remains a crucial complement to enthusiasm.
Featured image from Biztech Africa, chart from TradingView.com
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