Cardano (ADA) Price Shows Two Reversal Patterns: Will Bulls Finally Take Over?
Cardano's price shows potential for a bullish reversal supported by whale accumulation and technical indicators like an inverse head-and-shoulders pattern.Summary
Cardano (ADA) price, trading quietly, is showing signs of a potential bullish reversal based on on-chain data and technical patterns. Whales holding 10 to 100 million ADA have recently increased their holdings by about 50 million ADA, signaling quiet accumulation. Concurrently, the Spent Coins Age Band has dropped significantly, indicating rising dormancy, although it needs to fall further to confirm a strong accumulation phase.
Technically, the daily chart suggests an inverse head-and-shoulders pattern is forming, with the price currently testing the $0.66 resistance level (the 0.236 Fibonacci retracement). A close above this level could target $0.79. Furthermore, the Relative Strength Index (RSI) displays a bullish divergence, suggesting weakening selling pressure. While these factors support a reversal, failure to hold above the $0.60 support level would invalidate the pattern, potentially leading to a drop toward $0.50.
(Source：BeInCrypto)