Cardano Price Prediction: Will ADA Recover This Month?
On February 17th, the cryptocurrency market experienced a downturn as Bitcoin dropped from $52,000. This decline affected altcoins like Cardano, which saw a 2.56% drop in the last 24 hours. However, this pullback is likely temporary before the prevailing uptrend continues. So, should you take advantage of this dip?
Pennant Pattern Signals Potential Surge to $0.95
During the recent market correction, Cardano formed a pennant pattern after dipping from its late December high of $0.676 to a low of $0.447. These patterns often occur within existing uptrends and provide a pause before the price moves higher.
On February 8th, ADA broke through the resistance trendline of the flag pattern, indicating that the correction phase may be ending. This breakthrough led to an 11% increase in ADA’s price over the next two weeks, and it is currently trading at $0.585.
This rally reflects not only market dynamics but also the growth and strength of the Cardano ecosystem itself. The Q4 2023 report from Messari highlights significant milestones achieved by protocols operating within Cardano, such as MinswapDEX and Indigo Protocol.
These advancements have resulted in a remarkable 166% growth in Total Value Locked (TVL) within the ecosystem, a 37% increase in circulation and utility of stablecoins, and a impressive 127% appreciation in ADA’s market value.
Is Cardano Heading to $0.65 Again?
Despite a recent 5% decline attributed to Bitcoin’s momentum loss, ADA’s pullback seems to lack significant selling pressure. This suggests that it is a low-volume retracement rather than a bearish reversal.
Given the dynamics of the flag pattern, ADA is poised for a potential 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 between VI+ and VI- indicates that the recovery trend is intact.
- Bollinger Band: An increase in the upper boundary of the Bollinger band suggests that buyers continue to dominate this asset.
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