- Since retesting a critical support level, ADA has seen its price surge by over 3%.
- The metrics indicated a powerful price change.
Cardano [ADA] A notable surge of price over 3% has occurred following a drop to an important support level. The price surge has led to questions about whether or not it’s retesting the $0.42 critical support level.
Let’s find out –
As this article was being written, ADA price is testing a key support level at $0.42. This will likely lead to a reversal back towards the $0.47 or $0.50 levels. The breakouts will confirm the end of the bullish rally.
It is possible that the $0.42 resistance levels will coincide with support levels of pennant patterns, indicating a move upward.
At the time of press, both 50-day and100-day EMAs acted dynamically as resistance levels. A breakout above these levels would indicate a sustained price reversal.
The stochastic RSI (13.67) was also in a zone of oversold, indicating a bullish reversal imminent. This confirms that ADA has transitioned from a test at support to a rebound.
The metrics are telling us what story?
AMBCrypto, based on its analysis of recent Santiment whale activity data, found that a higher percentage of ADA’s total supply was made up of whales who held more than five million dollars.
The trend indicated that investors were growing more confident in Cardano’s long-term prospects, and an impending price drop. Santiment also tracked an increase in the social volume.
Increased social activity correlated with investor interest—a bullish reversal signal.
AMBCrypto analyzed Santiment’s Cardano data and found a significant upward trend.
Cardano’s ecosystem of continuous innovation may attract investors, and possibly sustain a bullish trend that could lead to the reversal of an upward price spike.
Cardano Voltaire’s phase which will be the culmination of their roadmap for a completely decentralised Blockchain ecosystem, set to take place this month, could have triggered the positive momentum that is building towards the reversal.
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What’s next Cardano?
Cardano’s recent price fluctuations strongly suggest a bullish turnaround on the horizon. Technical indicators such as moving averages and stochastic RSI indicated a positive reversal.
Moreover, market sentiments—increased development activities, increasing social volumes, and whale activity—all have their guns pointed at a significant price reversal for Cardano.
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Source: ambcrypto.com