This week, the crypto market witnessed renewed selling pressure as Bitcoin price reverted from the $70,000 psychological level. The altcoin market quickly followed the same momentum and sparked a fresh correction for major digital assets, including Cardano price. However, crypto analysts believe this may “not be the time to sell ADA,”
During Friday’s Asian market session, the ADA price fell 0.8% to $0.34, while its market cap plummeted to $12 Billion. The Cardano buyers’ retesting support from a bullish pattern signals the potential for price reversal amid bullish on-chain indicators.
Cardano Price Set for ATH? Analyst Says “Not the Time to Sell” ADA
In a recent tweet, crypto analyst Deezy.eth. highlighted a recurring pattern in Cardano price that led to a major recovery trend in the following months. The attached image shows a 3-day Heiken Ashi candle with the Relative Strength Index (RSI) momentum indicator.
The analyst discovered that the ADA price, often at the bottom of a downtrend, witnessed a higher formation in the RSI slope. Generally, this bullish divergence signals the buyers reentering the market at a discounted rate, which could drive a renewed recovery trend.
Historical data from December 2018 and March 2028 shows a major reversal following RSI divergence, with one leading to the current ATH of $3.1.
ADA chart analysis| Deezy.eth
Moreover, Cardano is making waves with its integration into the Bitcoin ecosystem via BitcoinOS (BOS), unlocking over $1.3 trillion in Bitcoin liquidity for its DeFi landscape. This collaboration leverages BOS’s Grail bridge, enabling secure, trustless BTC transfers using zero-knowledge (ZK) cryptography.
Cardano Poised for Bullish Rebound as MVRV Ratio Turns Negative
Cardano price potential for bullish reversal gains further traction as the 30-day Market Value to Realized Value ratio (MVRV) dips to a negative region. According to Santiment, the MVRV ratio plunged to -5.1%, indicating the short-term trades witnessing losses.
Therefore, prolonged consolidation or lack of movement could trigger panic selling among speculative traders while attracting long-term or stable buyers in the market. Historically, this transition has benefited ADA prices with a sustained bullish upswing.
30-day MVRV| Santiment
ADA Price Analysis: Triangle Breakdown Hints 13% Drop
The Cardano price plunged from $0.369 to $0.34 in the last three days— a 7.4% loss. The bearish turnaround teases a breakdown below the support trendline of a triangle pattern, which has been intact since mid-July.
If the daily close below the bottom support, the sellers could strengthen their grip over the asset and drive a 13% fall to hit $0.3. This psychological level coinciding with a long-coming support trendline should bolster buyers to counterattack.
However, if the triangle breakdown fails, the Cardano price will pump 14% to challenge the triangle pattern on the upside. The potential breakout from this accumulation phase is crucial for ADA coins to hit new ATH.
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