The price of Cardano (ADA) has seen a drop in recent weeks. After a 23-month high of $0.808 on March 11, ADA price has fallen more than 28% and is now hovering just below the $0.60 level. Notably, Cardano underperformed compared to its competitors, falling to 10th position among the largest cryptocurrencies by market cap.
However, a crypto analyst, known as Trend Rider (@TrendRidersTR) on X, declared that ADA is showing clear signs of a bull run based on technical analysis of its Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers.
What does this mean for Cardano price
According to Trend Rider’s recent post on $0.05 to $3.00.
The analyst emphasized: “ADA’s undeniable bull run is here. With its second RSI crossover in history, it is reminiscent of when prices soared from $0.05 to $3. This rare event, marking a potential trend change as the RSI crosses its SMA, perfectly predicted changes in past cycles in their early stages.”
The analysis presented by Trend Rider focuses on the RSI, a momentum oscillator that measures the speed and change of price movements, and its crossover with the SMA, a common trading signal interpreted as a potential bull market indicator. or low.
The post details three critical phases in Cardano’s recent market activity. The first crossover occurred shortly after the start of the COVID-19 pandemic when ADA traded at $0.19, marked by a substantial price increase following the crossover event.
At the end of the 2021 bull run, a bearish crossover occurred that heralded an extended bear market. “Notice how perfectly the bearish crossover anticipated the bear market. This is an extremely strong validation for this indicator. Making it very important to predict ADA’s long-term cycles”, says the analyst.
The second bullish crossover of the RSI with the SMA occurred in October and November 2023. This event was initially met with market rejection a few months earlier, adding credibility to the indicator’s reliability in predicting long-term market trends.
Trend Rider concludes: “The RSI and its SMA crossovers are an extremely reliable source for identifying ADA bull runs and bear markets in their early stages.” This analysis suggests that Cardano is currently entering a bull market phase, reinforcing the bullish outlook for ADA.
Furthermore, the analyst warned that the one-month chart reflects a macro outlook for holders, “each candle represents one month, so you can expect huge volatility within each candle.” Additionally, he warned about the risks inherent in crypto investments, noting the importance of a personalized investment strategy to navigate potential market volatility and unforeseen events, often referred to as ‘black swan’ events.
“VERY IMPORTANT: Personally, these macro charts help me see the bigger picture, but I always use my own process to ensure profits and protect myself from any black swan events,” Trend Rider added.
If history is any indicator, current patterns could mean a profitable time for Cardano HoldersBut as always in cryptocurrency markets, caution remains a critical companion to enthusiasm.
Featured image from Biztech Africa, chart from TradingView.com
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