Analysts point to a possible strong upsurge for Cardano (ADA) in the coming weeks based on classic market patterns.
Current ADA Analysis
Analyst RJT.WAGMI, with 124K followers, noted on March 31 that Cardano is forming an 'ABCDE' pattern—a type of consolidation structure often seen before major breakouts. In this setup, the price moves in five waves within a tightening range. A strong move is anticipated if D and E waves conclude. RJT mentioned a potential rise to $1.5, a level where seasoned traders typically accumulate.
Comparison with Past Behavior
Fellow analyst CW noted ADA's adherence to its long-term trend, hovering at the lower boundary of a symmetrical triangle. Once ADA breaks the convergence zone, there's minimal resistance to $1.9. Analyst Master Kenobi compared current ADA action to August–September 2024, when the token had a significant rally post a lengthy consolidation period.
Market Indicators
On the one-day chart, the 50-day moving average is above the 200-day moving average—indicative of ongoing momentum. Meanwhile, the Supertrend indicator fell below price and turned green, suggesting a potential trend reversal. The Relative Strength Index is nearing oversold levels. Nonetheless, ADA's high price correlation with Bitcoin (0.79) suggests dependency on Bitcoin's movements.
Despite current bearish pressure on ADA, market indicators and historical patterns suggest potential for future gains, especially if overall market conditions improve.
