Cardano price is approaching a crucial point, analyst sees a chance of a significant increase

Cardano (ADA) has been in a downward trend for weeks. Yet a well-known analyst now sees indications of a powerful turnaround. According to him, the price of Cardano can rise a lot faster than many investors think possible.

Cardano price at crucial support level

According to analyst Crypto Patel, Cardano’s price is at an important support level that has triggered an explosive rise in the past. Patel points to a technical pattern that previously led to ADA rising from $0.10 to an all-time high of $3.09, a rally of almost 3,000 percent.

With the current price, ADA is again in a so-called bullish order block, according to Patel. That is a price zone where many buyers previously entered and which formed the basis for a significant increase. If this level holds, he foresees an initial price target of $ 1.20. In the most optimistic scenario, the price could even rise to a new record high of $5.81.

Patel’s optimistic forecast does come with a clear warning. According to him, if ADA falls below $0.35, the scenario for a parabolic rise will lapse. That limit serves as his invalidation point, which means that if he breaks below that level, he would revise his bullish expectation.

In recent months, Cardano has been in a persistent downward trend. In September the currency was still trading at around 0.93 dollars. Yesterday the price fell to $0.44, the lowest level in more than a year.

Another analyst, Deezy, is also optimistic about Cardano. He sees a so-called bullish divergence on the daily chart of the digital currency. While the price makes lower lows, the RSI indicator, a measure of momentum in the market, shows higher lows. According to the analyst, this indicates decreasing selling pressure and a possible trend reversal towards an increase.

Bitcoin still determines the direction

Ultimately, it remains crucial that the king of the crypto market, Bitcoin (BTC), holds its own. However, at the moment the BTC price is at a critical level. After losing the USD 100,000 barrier, the support zone around USD 93,000 has now also been breached. If the recovery does not materialize, a further decline towards $80,000 is likely. Such a move could therefore put further pressure on altcoins such as ADA.