[TL; DR]
Cardano rallied by 15% within the previous week outperforming most leading cryptocurrencies.
The ADA price may fluctuate between $0.47 and $0.50 by the end of 2024.
Cardano RSI and MVRV ratio show bearish momentum.
Introduction
Cardano’s price performance was affected by the market wide pessimistic sentiment experienced during the recent months. Like all the other months, September was a bad period for the coin as it failed to gain by a noticeable margin. However, there is growing hope that the crypto asset will perform impressively during Q4, 2024 due to changes in global macroeconomic conditions. This article focuses on Cardano’s (ADA) recent 15% price surge and its potential future moves.
Cardano Hits Two-Month High: Analyzing the 15% Price Surge
Within the fourth week of September Cardano recorded a whopping 15% increase to sell at $0.41. Based on the ADA price analysis that was a notable gain following a long period of correction experienced earlier on during the year. Basically, the Cardano price correction started a few months after it recorded a yearly peak of $0.77 in January. At the time of writin, ADA is selling at $0.35 after gaining by 3.4% within the last 24 hours. Its current 24-hour price chart shows that ADA is in an uptrend, although the 7-day chart shows a downtrend. Cardano 24-Hour Price Chart – Coingecko
The above diagram shows an ADA bullish trend. However, as the tip of the graph shows ADA might have entered a short-term distribution phase. Despite the current 7-day depressed market, ADA had a strong ending during last week as the following graph shows. ADA Price Action – TradingView
The above image denotes ADA bullish outlook since there is a doji followed by bullish engulfing candlestick pattern. Since this pattern is a strong bullish reversal signal it indicates the possible end of a downward correction and the onset of a major upward price movement. According to ADA market analysis this is an indication of sustained upward momentum which may turn into a long-term rally.
A possible Cardano price rally has been backed by several bullish indications. For example, recently there has been an increase in ADA’s active addresses. During the beginning of September ADA’s active addresses surpassed 150,000 before dropping to around 120,000. However, this metric has risen past 130,000 again, showing a rise in retail investor interest in the asset. The following graph shows the recent changes in ADA’s active addresses. An Increase in ADA’s Active Addresses – Santiment
As observed, there has been a rise in ADA’s active addresses which indicates a potential increase in its trading activity and demand. Usually, a rise in the metric is accompanied by a surge in its price.
ADA’s open interest also shows a possibility of a continued price increase. In the past few days ADA’s open interest had been rising which is a bullish signal. Data on Coinglass shows that ADA’s open interest rose by 6.77%, during September as the next graph indicates. Cardano (ADA) open interest: Coinglass
A rise in open interest and price indicates that investment in the asset has been increasing. Such a situation shows that the cryptocurrency may experience steady growth within the foreseeable future unless there is a dramatic change of the dominant crypto investment strategy.
Are MVRV Ratio and RSI the Warning Signs for Cardano Investors?
Irrespective of ADA’s recent strong price action the Ethereum killer may face a strong Cardano resistance level which may stall further gains. At the same time, Santiment shows that Cardano’s MVRV ratio is within a danger zone. This means that the Cardano selling pressure has been rising. Presently, its 30-day MVRV ratio has reached 13%, indicating that many ADA investors are within the profit zone. Historically, the ADA investors sell their holdings when its MVRV ratio is between10% and 18%. This often leads to Cardano profit taking which may force its price to fall. The next graph shows Cardano’s MVRV ratio. Cardano MVRV Ratio - Santiment
When the MVRV enters a danger zone that indicates an end to the asset’s bullish run which may result in a minor correction or a prolonged downtrend. As a result, the bullish Cardano market momentum may decrease if the situation worsens.
In addition to the rising MVRV ratio ADA is also in an RSI overbought market condition. These two Cardano market indicators show a strong possibility of a bearish reversal which may increase Cardano investment risks. For example, this may result in large scale ADA liquidations. Cardano RSI - TradingView
As observed on the diagram ADA RSI is within an overbought market state. This may soon trigger a market cooling-off period.
Cardano Price Forecast: Directing Through Market Indicators
During the last week of September ADA broke above a symmetrical triangle that formed between July and September resulting in the recent rally. However, soon afterwards ADA retraced, targeting $0.364, a key support level. And indeed, it managed to fall below that price line as it is fluctuating around $0.35. However, if the bulls remain aggressive the ADA price target will be $0.44. According to the present ADA price prediction, there is a high chance that the asset may retest the $0.590 resistance level. ADA’s other key resistance levels are at $0.36; $0.37; $0.38; $0.39 and $0.42 .Above these levels the ADA price target is $0.46.
Although the cryptocurrency trading signals are showing bullish momentum there is also a chance of a price fall which may force ADA to retest the 6 September low of $0.304. However, since ADA has been fluctuating between $0.32 and $0.40 within the last few months there is a possibility that its price may slip further towards $0.285.
In terms of ADA price prediction many analysts believe that in October its value may fluctuate between $0.32 and $0.40. On the other hand, by the end of Q4, 2024 the ADA price may range between $0.47 and $0.50.
How Profit-Taking Strategies Could Affect Cardano
The Cardano profit-taking may occur if its price rises further. In most cases, traders use stop-losses, take-profit and trailing stop orders as profit taking strategies. Usually, profit taking are short-term rather than long-term strategies. Nevertheless, it may increase Cardano selling pressure which may lead to significant price falls in the short-run. For example, ADA traders might have adopted the profit taking strategy when its price rose to $0.40 a few days ago. And that pushed its value towards $0.34. With the current ADA price standing a profit taking strategy may force it to drop to $0.285.
Conclusion
The recent Cardano price surge enabled it to reach its two-month high. Although Cardano is showing bullish momentum its RSI reading and MVRV ratio are indicating potential bearish pressure in coming days. In the meantime, there is a chance that the ADA price may rise above $0.4 within the next few weeks. On the other hand, if Cardano selling pressure increases its price may fall to $0.285.
FAQs on Cardano (ADA)
What will Cardano be worth in 2025?
The Cardano price may reach $0.61 in 2025 after gaining by around 61.99%. At present ADA is trading at $0.41 and will likely fluctuate between $0.40 and $0.50 by the end of 2024.
When can Cardano hit $1,000?
The Cardano (ADA) price may reach $1,000 between 2040 and 2050. However, such a high price target can only be reached in the very long term. Also, the regulatory development, the economic environment and crypto adoption rate will determine when that price can be reached.
How much will 1 Cardano be worth in 2030?
The current price predictions show that 1 Cardano (ADA) will likely fluctuate between $2 and $10 in 2030. Nonetheless, the crypto market sentiment that will exist between now and 2030 will influence its value.
Is Cardano going to go up in price?
Most likely the Cardano (ADA) will rise. However, it is not definite as to when and how much its value will increase by. Current price prediction shows that ADA may fluctuate between $0.47 and $0.50 by the end of 2024.