Cardano (ADA) price has fallen in recent weeks. After hitting a 23-month high of $0.808 on March 11, ADA price has fallen over 28% and is currently hovering just below the $0.60 level. Notably, Cardano has underperformed compared to its competitors, dropping to 10th place among the largest cryptocurrencies by market capitalization.
However, the crypto analyst known as Trend Rider (@TrendRidersTR) at X. declared Based on technical analysis of the Relative Strength Index (RSI) and Simple Moving Average (SMA) crossover, we find that ADA is showing clear signs of a bull market.
What this means for Cardano price
According to Trend Rider's recent post on This led to a significant price increase to $3.00.
The analyst emphasized, “The undeniable bullish movement for ADA is here.” It reminds me of when the second RSI crossover in history caused prices to jump from $0.05 to $3. This rare event, which indicates a potential trend change when the RSI crosses the SMA, perfectly predicted changes in past cycles at an early stage. ”
The analysis provided by Trend Rider focuses on the crossover between RSI, a momentum oscillator that measures the speed and change of price movements, and SMA, a common trading signal that is interpreted as a potential bullish or bearish market indicator. Focused.
This post details three key stages in Cardano's recent market activity. The first crossover occurred shortly after the start of the COVID-19 pandemic, with ADA trading at $0.19 and featuring a significant price increase following the crossover event.
At the end of the 2021 bull market, a bearish crossover occurred that portends an extended bear market. “Notice how perfect the bearish crossover is in predicting a bear market. This is a very strong validation for this indicator. It becomes very important to predict the long-term cycle of ADA.” says the analyst.
The second bullish crossover between RSI and SMA occurred in October and November of 2023, but this event was initially met with market rejection several months ago and is not expected to predict long-term market trends. The reliability of the indicators has increased.
Trend Rider concludes that “RSI and its SMA crossover are very reliable sources for identifying ADA bull and bear markets in their early stages.” This analysis suggests that Cardano is currently entering a bull market phase, reinforcing the optimistic outlook for ADA.
The analyst further cautioned that one-month charts reflect the holder's macro perspective, and that “each candlestick represents one month, so expect significant volatility within each candlestick.” did. Additionally, he warned of the risks inherent in crypto investing and pointed out the importance of an individualized investment strategy to weather potential market fluctuations and unforeseen events, often referred to as “black swan” events. did.
“Very important: Personally, these macro charts help me see the big picture, but I always use my own process to secure profits and protect myself from any black swan events. ” added Trend Rider.
If history is any indicator, the current pattern could mean favorable times for Cardano holders, but as always in the crypto market, caution remains the essence of enthusiasm. Thing.
Featured images from Biztech Africa, charts from TradingView.com
