Today the global cryptocurrency market has recovered by 0.92% over the last 24hrs trading at $1.73 trillion. As Bitcoin has started gaining its bullish trend, most of the altcoin are following the largest currency.
Cardano is one among them who have registered a positive price action as the currency is trading at $0.77 with a hop of 0.94% in the last 24hrs.
Bullish Reversal Expectations For ADA
After Cardano broke through its support level, the price action began its movement towards a bearish trend. However, as the ADA price is currently waving a green signal, we can say that price action is showing signs of strong trend reversal which will help for a bull run.
Since February, ADA was seen trading in a megaphone pattern where the price is always restricted between its support & resistance zone. But in the last week of March, the ADA price started moving in a downward trend.
On the other hand, ADA’s current price action indicates that the currency might see a jump from its current lows.
The oversold context is what suggests a bullish reversal. ADA’s RSI declined below 30 on April 30 and the MFI indicator was seen near the accumulation zone after it dropped at 19.
On the other hand, ADA’s DMI proves that the price action has been bearish over the last few weeks, but the DI was pulled back below ADX indicating that bears are losing their control and are on the verge to give up.
On-Chain Metric’s Take On ADA Price
In the month of April, ADA’s MVRV ratio was seen closing at the lowest point which indicated that only a few ADA holders have gained some profits.
Meanwhile, the 2-year dormant circulation metric of Cardano’s ADA indicates a surge between April 22 & 24. This action means that quite a few ADAs have been moved during this time as the price continued to drop.
The long-term holders didnt sell their ADA holdings at lower price as they are eagerly waiting for price surge and this was proved with ADA’s Dormant supply metric being inactive in the last few days.
When we take a closer view of ADA’s supply distribution it points towards the account holding between 100,000 and 1 million coins declined during the month.
On the other side, the larger accounts supply distribution above 1 million depicts an increase, which is seen during the last two weeks. Hence, we can say that whales have been accumulating ADA at the lower price.
Though these factors put ADA on positive prospects, its is still not guaranteed that bears will leave ADA due to long position shakedown.
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