- ADA’s price had fallen nearly 20% in the past 30 days.
- Statistics and indicators supported the possibility of a bull run.
Cardano [ADA] witnessed a major setback last month when its value plummeted sharply.
However, if historical data is to be believed, ADA could soon experience explosive growth, which could push the token’s price to an all-time high.
This indicates a Cardano rally
According to CoinMarketCapCardano lost a large part of its market capitalization last month when its value plummeted by almost 20%.
Although ADA’s price rose 3% over the past seven days, this was not enough to make up for the monthly loss.
At the time of writing, ADA was trading at $0.5087 with a market cap of over $18 billion, making it the 10th largest cryptocurrency.
But things could soon turn in ADA’s favor as the token mimicked 2020’s price action. Milkybull, a popular crypto analyst, recently posted tweet to draw attention to a historical trend.
According to the tweet, an Adam and Eve pattern formed on ADA’s chart, which, the last time it showed up, resulted in a massive bull rally.
To be precise, ADA’s price gained bullish momentum in 2020 after it exited the pattern. If history repeats itself, a breakout above the pattern could lead to Cardano reaching an all-time high in 2024.
With chances for a bull rally, AMBCrypto analyzed Hyblock Capital’s data to look for immediate targets for ADA. According to our analysis, if a bull rally occurs, ADA’s price could first reach $0.52.
The liquidation of the token will rise sharply at that level, which could result in a short-term price correction.
A successful breakout above that level could see ADA reach $0.56. However, if something goes wrong, investors may witness a drop in ADA’s price near $0.49 as the price gained strong support there.
Source: Hyblock Capital
What direction is ADA heading?
AMBCrypto then checked Cardano’s metrics to see if they supported the possibility of a bull rally. According to our analysis of Santiment’s data, ADA’s MVRV ratio has improved significantly over the past week.
Another bullish measure was the win rate of ADA’s offering, which also headed north.
However, the crypto’s network activity looked worrying as daily active addresses fell slightly in recent days.
Source: Santiment
Read Cardanos [ADA] Price prediction 2024-25
Nevertheless, technical indicators remained bullish. For example, both the Relative Strength Index (RSI) and the Chaikin Money Flow (CMF) recorded increases, indicating continued price appreciation.
The Bollinger Bands indicated that the ADA price was close to its 20-day Simple Moving Average (SMA). A successful breakout above that level could cause ADA to become volatile northbound.
Source: TradingView