CandleFocus

Cardano (ADA) Slides to $0.60: Indicators Suggest Bull Run Isn’t Over

Author: Content Editor
Cardano's (ADA) price has seen a significant increase of nearly 80% in the past week, making it the second-best-performing asset among the top 10 cryptocurrencies. There is speculation that ADA could reach its 2021 peak levels. However, a recent pullback in price to $0.60 has raised concerns for some.

On-chain analysis suggests that the retracement may be short-lived. Data from IntoTheBlock shows that the Average Transaction Size has increased, indicating that large investors are driving ADA's recent ascent. Historically, when this happens, ADA's price continues to rally, despite brief pullbacks.

Another metric, the Mean Dollar Invested Age (MDIA), is also suggesting that ADA's bull run is not over. As the MDIA decreases, it indicates that investments are returning to active circulation, which is a bullish sign.

From an on-chain perspective, the In/Out of Money Around Price (IOMAP) analysis reveals that ADA is trading at a point where a significant number of addresses have accumulated tokens. This suggests strong support at $0.59, and ADA could potentially rise to $0.70 in the short term.

From a technical point of view, the weekly chart shows that ADA has broken out of a descending triangle pattern, indicating the potential for higher value. If this is the case, Cardano's bull run could extend into next year, with the price possibly reaching $1.34.

However, it is important to note that if selling pressure intensifies, the price prediction may not come to fruition, and ADA's value could decrease further.

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