ADA could be on the verge of a significant price surge in the upcoming weeks, with some analysts predicting gains of more than 130%.
According to a recent post by renowned analyst RJT.WAGMI on March 31, Cardano is showing signs of forming a classic “ABCDE” triangle pattern. This pattern involves the price moving in five distinct waves labeled A through E within a narrowing range, typically culminating in a strong breakout in one direction. Currently, ADA is in the midst of the C wave, a downward trend, but once it completes the D and E waves, a significant upward breakout could follow. RJT.WAGMI suggested that a bounce from the 0.5–0.618 Fibonacci retracement zone could act as a catalyst for a move towards $1.5, with experienced traders likely to accumulate during this pattern formation.
Another analyst, CW, also expressed optimism about ADA’s potential price movement. He noted that ADA is respecting its long-term trend and is hovering near the lower boundary of a symmetrical triangle pattern, a consolidation setup where the price compresses between converging trend lines. Once ADA breaks above this convergence zone, CW believes there is minimal resistance until $1.9, with net buying activity signaling a bullish outlook.
Additionally, analyst Master Kenobi drew parallels between ADA’s current price action and its behavior in August–September 2024. During that period, ADA experienced a strong rally following a prolonged consolidation phase. With ADA not dropping to a new low after its dip to $0.49 on February 3, Master Kenobi anticipates a similar breakout in May, potentially pushing the price to $2.5.
Despite the bullish forecasts, ADA is currently facing bearish pressure, with its price down 6.2% over the past day at $0.64 and a market cap of $23.3 billion.
Technical analysis of ADA on the 1-day/USDT chart reveals a bullish setup, with the 50-day moving average above the 200-day moving average indicating sustained momentum and a potential breakout. The Supertrend indicator has turned green below the price level, signaling a potential trend reversal, while the Relative Strength Index is nearing oversold levels, prompting bulls to potentially push the price higher.
Furthermore, ADA’s MVRV Z-score has dropped to its lowest level since early March, suggesting that selling pressure is easing and accumulation may begin. However, ADA’s price correlation with Bitcoin remains strong at 0.79, indicating that ADA’s next move will depend on Bitcoin’s performance.
In conclusion, while ADA is facing some short-term challenges, analysts are optimistic about its long-term prospects and the potential for a significant price rally in the coming weeks. Investors are advised to conduct their own research and not take this article as investment advice.