ADA Price Analysis: Did Cardano Price Just Break Out Pre-Hard Fork?

ADA price analysis: The price of Cardano (ADA) increased by 2.3% in the last 24 hours to trade around $0.408 during European business hours on Tuesday. The increase comes just a few days before the eagerly anticipated Cardano Chang hard fork.

ADA price Analysis Reveals an Inbound Rally to $0.82

ADA price hit a yearly high in the March mini bull run before it began its descent. In the downward spiral, the ADA price action formed a falling wedge, which just broke out yesterday.

Cardano price did witness a death cross on May 11, 2024, but this can be rectified with enough bullish momentum. Currently, the price of ADA is trending below the 50-day and 200-day simple moving averages, but maybe not for long.

Although there is the possibility that this could be a fakeout, a good confirmation of the breakout would be ADA price hitting the low resistance around $0.47 and retesting the upper trendline of the falling wedge around $0.37 before surging higher. If, during the retest, Cardano slides back inside the falling wedge, then the breakout would be invalidated.

If bulls are persistent enough, Cardano’s price may execute this breakout flawlessly, resulting in a 98% increase in price back to the yearly highs. Some resistance may be experienced around $0.47, $0.54, and $0.6.

On the flip side, the price of ADA may find support around $0.37 and $0.33 before bouncing back up.

An alternative scenario would be Cardano entering another consolidation zone between $0.47 and $0.36. This would also invalidate the breakout.

Data from Coinalyze shows the aggregated ADA Open Interest (OI) just jumped 3.5% in the last 24 hours, with 70% of traders across exchanges going long on the asset against 30% of shorters. 

Can ADA Price Ride the Hard Fork Hype to New Highs?

The ADA community is enthusiastic about this new price development and is hoping it will play out into a fully-fledged breakout. The Chang hard fork comes at a crucial time for the Cardano ecosystem, and it aims to make the chain more decentralized. Additionally, Chang Hardfork will unlock 1.5 billion ADA, only accessible through a DAO-type proposal and voting system.

The 24-hour trading volume of Cardano jumped 12.5% in the last 24 hours, revealing an increasing interest in the asset among investors. Investors expect that this new chain development will boost ADA’s price.

Bottom Line

Cardano’s price analysis indicates an exciting potential breakout just ahead of its anticipated hard fork. This pre-hard fork price movement highlights the crypto community’s enthusiasm for Cardano’s ongoing evolution and its potential for future growth.