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Highlights
- A daily candle with long tail rejection indicates the demand pressure is high for discounted ADA price.
- The current recovery may face notable supply pressure at $0.616 and $0.676 resistance.
- The intraday trading volume in the ADA coin is $395 Million, indicating a 35% loss.
Cardano Price Prediction: On February 17th, the cryptocurrency market witnessed a notable downtick as the leading digital asset Bitcoin reverted from $52000. This reversal quickly influenced the altcoins including Cardano as the price dropped 2.56% in the last 24 hours. However, the pullback associated with decreasing volume reflects a temporary reversal before the prevailing trendline continues, should you enter this dip?
Also Read: Cardano’s Chang Hardfork & Plutus V3 Upgrade Set To Redefine ADA’s Future
Pennant Pattern Signals Potential Surge to $0.95
During the recent downturn in the cryptocurrency market, the Cardano price experienced a significant reversal from its late December high of $0.676. This correction saw the price dip to a low of $0.447, but technical analysis reveals that this retreat served to form a classic continuation pattern known as a pennant.
Such patterns often emerge within an existing uptrend, providing a pause that allows investors to regroup before pushing the price higher.
On February 8th, ADA broke through the flag pattern’s resistance trendline, indicating that the correction phase might be concluding. This breakthrough led to an 11% increase in the ADA price over the following two weeks, with it currently trading at $0.585
This rally is not just a reflection of market dynamics but also a testament to the underlying strength and growth within the Cardano ecosystem itself. The Q4 2023 report from Messari throws light on this expansion, showcasing significant milestones achieved by protocols operating within Cardano, such as MinswapDEX and Indigo Protocol.
These advancements are quantified by a remarkable 166% growth in Total Value Locked (TVL) within the ecosystem, a 37% increase in the circulation and utility of stablecoins, and an impressive 127% appreciation in ADA’s market value. This composite metric showcases a heightened level of engagement and investment within the Cardano network.
Related Article: Cardano (ADA) DeFi TVL Jumped 166% in Q4 2023: Report
Is Cardano Heading to $0.65 Again?
Despite a recent 5% decline in ADA’s price over the last 48 hours—attributed to a decrease in Bitcoin’s momentum—this pullback appears to lack significant selling pressure, suggesting it’s a low-volume retracement rather than a bearish reversal.
Given the dynamics of the flag pattern, ADA is poised for an approximate 15% rise in the near term, aiming to reach $0.676, followed by an extended rally to $0.95.
Technical Indicator:
- Vortex Indicator: A wide bullish crossover state between VI+(orange) and Vi-(pink) reflects the recovery trend is intact.
- Bollinger Band: An uptick in the upper boundary of Bollinger band indicators reflects that the buyers continue to dominate this asset.
Also Read: Is Cardano the Next Big Thing in Stablecoin Growth?
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