Analysts expect explosive ADA increase – provided Bitcoin cooperates

The Cardano (ADA) price may be preparing for a major price movement. According to an analyst, a combination of technical signals brings back memories of the summer, when ADA doubled in a short time. Is Cardano indeed on the verge of a new outbreak?

Cardano price shows RSI reset and bullish pattern

According to an analysis by The DApp Analyst, a situation that led to a significant price jump in July is currently repeating itself. This concerns the Relative Strength Index (RSI), an indicator that measures the strength of buying and selling pressure.

The analyst points out that the RSI has again fallen below 40. While this level is not officially considered ‘oversold’, it does indicate weak momentum and waning selling pressure. That is often the moment when buyers start to show interest again. The same pattern occurred in July, after which ADA rose sharply in the following weeks.

At the same time, the Cardano price forms a falling wedge pattern. This is a falling wedge pattern in which the price makes increasingly lower tops and bottoms, but the movements become smaller and smaller. Such patterns often precede a bullish reversal.

At the time of writing, the price is trading around $0.56. According to the analyst, if a convincing breakout rises, the price could rise to a range between $0.75 and $0.85. In the most optimistic scenario, that would mean an increase of almost 52 percent from current levels.

DA at risk during Bitcoin decline

Well-known analyst Ali Martinez pointed out a breakout of ADA to $ 1.70 at the end of last month. However, that rally failed to materialize after Bitcoin (BTC) fell from around $116,000 to a low of $99,000. The correction dragged down the entire crypto market, including Cardano. Two days ago, Martinez indicated that ADA could rise again. However, it must hold the support level of USD 0.50 for this. If that works, he sees room for an increase towards $0.70.

Yet Bitcoin continues to lead. If BTC falls further, Cardano could also fall below its support level. The 50-week Simple Moving Average (SMA) is now important for Bitcoin. This is an average price level over the past 50 weeks and is often seen as long-term support. Currently, the 50W SMA comes in at around $102,000. If Bitcoin closes below that this week, it could be a sign that the bull market is coming to an end.