News Report:
Due to the Chaikin Money Flow (CMF) indicator showing an increase in buying pressure, it is expected that Cardano’s price will inevitably rise to its all-time high (ATH) of $3.
In the past 24 hours, ADA’s price has slightly decreased by 0.67%, with the price currently at $0.3618 and a market capitalization of $12.68 billion. This increase is accompanied by a broader market recovery, but will ADA continue to rise?
Cardano’s price rise is inevitable!
Considering the latest development of the Chaikin Money Flow (CMF) indicator, the outlook for Cardano’s price is positive. Furthermore, looking at ADA’s long-term consolidation trend, the current price has successfully avoided forming lower lows on the weekly chart.
Subsequently, the Chaikin Money Flow (CMF) indicator has shown a higher formation, indicating an increase in buying pressure and a possible bullish momentum. This indicator measures the weighted average of the accumulation and distribution of volume over a certain period, helping to identify buying or selling pressure in the market.
Based on the accumulation since the end of 2020, the indicator’s entry into positive territory provided an early signal of an upward trend and reached a historical high of $3.1.
How will Cardano reverse its pullback as bullish momentum returns?
On the 4-hour chart, Cardano has turned bullish, currently staying above the 100-day Simple Moving Average (SMA) and printing multiple green candles. As long as the price remains above this level, the bulls may maintain control and further upward movement is possible.
Analysis of the 4-hour Relative Strength Index (RSI) shows a significant increase, rising from 53% to 63% from the previous dip. This growth reflects an enhanced bullish momentum and indicates increasing buying pressure in the market. Although the current level is still below the overbought zone, the upward trend of the RSI suggests an increase in demand and may pave the way for further upward movement.
Furthermore, the daily chart shows Cardano actively attempting to break above the 100-day moving average, which is a key resistance level. A successful breakthrough of this moving average may indicate a stronger bullish trend, boost investor confidence, and attract more buyers. If ADA surpasses this resistance level, it may lead to a shift in market sentiment and more upward movement.
The RSI on the daily chart is currently at 53%, indicating a bullish trend for ADA as it is above the key threshold of 50%. Typically, this suggests that buying pressure exceeds selling pressure, reflecting strong momentum and growing optimism among traders about ADA’s price potential.
ADA price analysis suggests a significant breakthrough after months of consolidation
Over the past three months, Cardano’s price has exhibited a sideways movement in a symmetrical triangle pattern on the daily chart. The cryptocurrency has resonated within the converging trend lines, driving the current trading price of $0.36. If this pattern acts as a suitable accumulation trend, ADA’s price could surge by 7.8%, challenging the key resistance trend line. An upward breakout will accelerate the bullish momentum and support an initial 48% rise, reaching a level of $0.57.
On the contrary, a bearish breakout below the downward trend line of this pattern would invalidate the long-term bullish argument.
The positive turn of the CMF indicator may push the cryptocurrency to inevitably soar to $3, while ADA’s price is still 7.9% away from breaking free from the three-month consolidation of the triangle pattern.