In simpler terms, the cost of Cardano (ADA) has gone down noticeably in the past few weeks. After reaching a 23-month maximum of $0.808 on March 11, ADA‘s price dropped more than 28%, bringing it close to the $0.60 mark. It is worth mentioning that Cardano has lagged behind its peers, dropping to number 10 in terms of market capitalization among leading cryptocurrencies.
An expert in cryptocurrency analysis, referred to as Trend Rider (@TrendRidersTR) on platform X, has pointed out that Cardano (ADA) could be gearing up for a bull market based on its Relative Strength Index (RSI) and Simple Moving Average (SMA) indicators.
What This Means For Cardano Price
Based on Trend Rider’s latest analysis on X, the pricing trend of Cardano’s ADA against the US dollar in the past month (as shown in the one-month chart) bears an unusual resemblance to a historical pattern that had previously caused a substantial price increase from $0.05 to $3.00.
The analyst pointed out that ADA‘s strong upward trend is unmistakable now. This is the second time in history that its Relative Strength Index (RSI) has crossed above its Simple Moving Average (SMA), which brings to mind the price surge from $0.05 to $3. This unusual occurrence, signaling a possible change in trend as the RSI overtakes its moving average, has accurately forecasted past market shifts at their early stages.
Trend Rider’s analysis zeroes in on the Relative Strength Index (RSI), an oscillator that gauges the momentum behind price shifts, and its interaction with the Simple Moving Average (SMA). The RSI’s crossover with the SMA is often read as a bullish or bearish sign for market trends.
The post details three critical phases in Cardano’s recent market activity. The first crossover occurred shortly after the COVID-19 pandemic onset when ADA traded at $0.19, marked by a substantial price increase following the crossover event.
Towards the close of 2021’s bull market, a significant shift occurred: a bearish crossover emerged, signaling an extended period of declining prices for cryptocurrencies like ADA. According to the analyst, “This bearish crossover was spot on in predicting the bear market. Such a validation underscores the power of this technical indicator, making it a valuable tool for forecasting long-term trends in ADA.”
In October and November 2023, the RSI line crossed above the SMA for the second time, an occurrence known as a bullish crossover. Previously, this signal was ignored by the market several months prior. This early rejection actually strengthens the credibility of the RSI and SMA indicators in identifying long-term trends.
According to Trend Rider’s assessment, the Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers serve as a highly effective tool for identifying the initial stages of Cardano’s bull markets and bear markets. Based on this finding, it appears that ADA is now moving into a bull market period, adding credence to the positive perspective regarding ADA‘s future price movements.
In addition, the analyst emphasized that the one-month chart provides a broad view for investors, as each bar represents a month and signifies significant price fluctuations. He also underscored the risks involved in crypto investments, advocating for customized investment plans to help mitigate market instability and unexpected occurrences, commonly known as “black swan” events.
“VERY IMPORTANT: Personally, these macro charts help me see the bigger picture, but I always use my own process to secure profits and protect myself from any black swan event,” Trend Rider added.
Based on historical trends, it appears that Cardano’s current patterns may lead to profitable times for its holders. However, it’s important to remember the unpredictable nature of cryptocurrency markets – while excitement is natural, prudence should also be a constant companion.
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2024-04-12 15:22