Cardano (ADA) has been one of the most talked-about cryptocurrencies in recent times. However, like other digital assets, ADA has also experienced a pullback as of late.
According to the well-known trading analyst in the crypto space, Ali Martinez on April 19, the current correction may actually be a bullish retest before ADA reaches the target of its inverse head and shoulders formation.
The inverse head and shoulders formation is a classic pattern in technical analysis that often signals a bullish trend reversal. Cardano’s chart indicates that the digital asset is in the process of completing this pattern, and if it does, the price could potentially surge higher in the coming weeks.
However, ADA’s bullish outlook is not set in stone. It heavily relies on the 200 EMA on the daily chart at $0.39, which must hold for the digital asset to maintain its upward momentum. A breakdown below this critical support level could indicate a shift in market sentiment and potentially lead to a bearish trend for ADA.
ADA analysis
Investors in ADA should keep a close eye on the digital asset’s price movements and monitor any developments that could affect its future price action.
In addition to potential positive price movements, Cardano is also leading the way in GitHub development activity. As of April 20, it had a total of 661 commits, far surpassing other leading blockchain projects.
Cardano’s leadership in GitHub development activity is a positive sign for the digital asset’s future. It demonstrates the team’s dedication to innovation and continuous improvement, which is crucial for the long-term success of any blockchain project.
Overall, if ADA’s bullish momentum continues, the digital asset could potentially reach heights of around $0.50 in the coming weeks and months.
As things stand, Cardano is trading at $0.4185, up 0.73% in the last 24 hours and a further 2.09% across the previous week.
With a total market capitalization of $14.5 billion, ADA is currently ranked as the seventh largest digital asset by market worth.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
