Cardano Price Prediction: Breakout might unleash 20% rally
The Cardano price increase on Monday implies a bigger positive trend.
On-chain data reveals institutional investor interest
If ADA falls below $0.456, the 61.8% Fibonacci retracement, investors may buy again.
Technical indicators and on-chain measures suggest a 15% surge for Cardano (ADA) following Monday's 7% price gain. The “Ethereum-killer” price action has established a double-bottom technical pattern and broken over $0.47 resistance, a positive indication backed by rising network activity.
Cardano breached $0.47 barrier on Monday and has stayed above it in the four-hour time period. From May 10 to 15, the Relative Strength Index (RSI) showed higher lows while prices formed lower lows, a positive divergence. A rise above the oversold region might trigger a new long trade due to bullish momentum.
After twice rebounding off $0.42, Cardano pricing peaked at $0.47 in the early part of May. A bottom reversal pattern like this ‘W’ (double-bottom pattern) frequently favors bulls and signals a trend change. If bullish momentum continues and ADA breaks resistance at $0.52, a daily high from April 22 and the monthly pivot level of April, it may rise 15% to $0.60, the April 11 high.
In a drop, the Volume Profile indicator suggests $0.47–$0.45 as support. Investors may purchase the dip here since it has the biggest trading volume. This sector is also near the 61.8% Fibonacci retracement level at $0.45, making it a high-probability reversal zone.
On-chain Cardano indicators support the bullish thesis. IntoTheBlock data reveals active addresses rose sharply to 38,620 on May 20 from 21,640 on May 12. This shows Cardano demand is rising.
If Cardano's daily candlestick falls below $0.42, the price will produce a lower low compared to the May 15 swing low, continuing the downtrend and likely scaring investors into selling. This will disprove the bullish thesis, causing a 7% drop to $0.39, a significant barrier between mid-April and mid-November 2023.