Cardano (ADA) began to decline in value after reaching a high point of $0.808 on March 11, which was the highest value in 23 months.
After falling more than 28%, ADA has recovered to just below $0.60 and is ranked 10th among the top cryptocurrencies by market value.
Although ADA is currently going downwards, an expert on platform X called Trend Rider has suggested that the price may go upwards in the future.
Utilizing technical analysis, primarily emphasizing on crossovers of indicators like the Relative Strength Index (RSI) and Simple Moving Average (SMA), Trend Rider indicates that ADA may be about to experience a significant price increase.
Cardano’s Evaluation
Trend Rider recently shared an analysis on platform X that looked at the ADA/USD one-month chart and found a strange pattern that made them think of something that happened before and caused an enormous increase from $0.05 to $3.00.
Trend Rider emphasized how important this pattern was by stating that this was the second time in ADA’s history that the RSI went over. This meant that the market might be changing, just like it did in previous cycles.
Trend Rider examined the RSI (a momentum indicator that measures how swiftly and significantly prices change) and its crossing over the SMA (a widely used signal that shows possible changes in market state). These are the two most significant things.
The expert discussed three important steps in Cardano’s recent market activity. The first crossing happened at the same time as the COVID-19 outbreak, which made prices go upward significantly. On the other hand, a bearish crossing stopped the bull market in 2021 and began an extended bear market.
People were uncertain at first when the RSI crossed above the SMA for the second time in October and November 2023, but it turned out to be an encouraging indication that the indicator could correctly predict long-term market trends.
He concluded that RSI and SMA crosses are excellent methods to spot the beginning of bear markets and the start of bull markets in the ADA.
Based on this analysis, it appears that ADA might be entering a bullish phase. However, people should be careful because cryptocurrency markets are typically unstable and black swan events can happen.
Overall, past patterns indicate that Cardano users may be entering a profitable phase. However, it remains important to be careful because cryptocurrency markets can be extremely unpredictable.
