After an impressive rally that saw the Cardano (ADA) price rise above $1, we are now seeing a correction where the coin drops below this psychological limit again. The drop of 8% in the past 24 hours marks a striking turnaround after a rise of as much as 184% in the past month. The big question is: is this pullback just a temporary correction within an uptrend, or is this a possible turning point towards a downtrend?
Technical indicators remain positive
Despite the recent price pressure, technical indicators continue to point to a healthy correction within a broader uptrend. Cardano follows a so-called “ascending broadening wedge” pattern, a chart formation in which the price reaches higher highs and higher lows within an increasingly widening range. This pattern often indicates volatility with a chance of a future breakout.
ADA price expectations
An impending “golden cross,” where the 50-day and 200-day moving averages cross, signals a possible continuation of the upward trend. If this pattern continues, Cardano’s price could reach a conservative target of $2 by 2025, which represents an upside of 120% from current levels.
With continued optimism, ADA could even surpass its previous all-time high (ATH) of $3.09 from 2021. However, to reach that level, the token still needs to increase in value by 240%.
Whales remain active
Cardano whales play a crucial role in the altcoin ecosystem. Currently, these major investors manage more than $12 billion in ADA, representing 38% of the total market value. This strong involvement from major addresses is seen as a key driving force behind ADA’s recent rally.
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Source: https://newsbit.nl/cardano-zakt-weer-onder-1-wat-betekent-dit-voor-de-koers/
