Cardano (ADA) price has been rebounding after falling to its worst levels since February 2021. Meanwhile, a technical fractal suggests that ADA's upside retracement could continue in the coming weeks.
ADA's price has started bouncing after testing the same support area that preceded a 65% bull run in March 2022.
Specifically, ADA/USD witnessed a bullish rejection as its price fell below $0.75 on Feb. 24, a move that followed a short period of sideways consolidation.
It later broke out of the flat price range, rising to $1.24 on March 26, indicating a strong buying sentiment near the area around the $0.75-level (the red bar in the chart below).
The March 2022 fractal also showed ADA's three-day relative strength index (RSI) treading near its oversold threshold of 30. The momentum indicator has returned to near the same level as ADA consolidates inside the flat range.
As a result of this fractal, Cardano eyes a sharp rebound from $0.75 in May 2022, with its interim upside target around $1, a level that coincides with the upper trendline of ADA's prevailing descending channel pattern.
Conversely, a break below the $0.75-level, accompanied by an increase in volume, could have ADA test the descending channel's lower trendline as its next downside target (near $0.55).
Cardano can also undergo a sharp rebound because of strong accumulation sentiment.
Notably, Cardano's richest investors, or "whales" that hold between 1 million ADA and 10 million ADA, have added 196 million ADA (worth $147 million at May 3's price) to their addresses in the past five weeks, on-chain data from Santiment shows.
The accumulation sentiment grows as ADA trades near its 15-month lows, suggesting that investors have been buying the dip in anticipation of a sharp rebound. Earlier, a distribution phase witnessed across whale addresses between December 2021 and March 2022 coincided with ADA price dropping from $1.75 to around $0.75.
The Digital Trend, a pseudonymous analyst at Seeking Alpha, anticipates Cardano to continue heading lower in the next three–four months, primarily due to its correlation with the rest of the crypto market that risks correction due to macroeconomic factors.
Related: 400 new projects and 100K new wallets in a month on Cardano
Nonetheless, the analyst noted that ADA's price would rebound to a new all-time high in the days leading to "Basho," Cardano's next technical upgrade that promises to bring greater scalability.
"ADA's price has always rallied strongly leading up to the update," he explained, adding:
"In the months leading up to Shelley, ADA went from $0.02 to $0.15. Between Shelley and Goguen, ADA also appreciated significantly, and we see nothing but green in the months leading up to the upgrade."
The Basho update will go live sometime in 2022 or early 2023, according to Cardano's roadmap.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Cardano's smart contracts soar 67% to 24,050, impressing co-founder Charles Hoskinson. The ecosystem boasts 157 launched projects and 1,319 in development. Despite ADA's market dip, Cardano's growth remains noteworthy.
Xu LinCardano's recent development dominance doesn't translate into bullish outcomes for ADA. Technical indicators and market conditions point towards potential further losses. As ADA hovers at $0.46, a cautious approach is advised, considering the possibility of a bearish trend continuation.
SanyaCardano Tops Development Activity: Santiment Metric. With 333 events in 30 days, ADA leads, signaling strong commitment. Despite market dip, Cardano's development highlights long-term potential. Ethereum reenters top 10, emphasizing development commitment for sustained investment.
Xu LinBen Armstrong presents a balanced view of Cardano's controversies, achievements, and resilience in the volatile crypto market.
BrianCardano ADA is on the brink of a significant milestone, with debates circulating about its potential to hit the $1 mark. The anticipation surrounding this benchmark has piqued the interest of investors and analysts, acknowledging the psychological impact such an achievement could have on ADA's trajectory.
JoyCharles Hoskinson, Cardano's founder, remains opposed to partnerships with XRP due to ongoing community hostility and differing technological paths.
SanyaCharles Hoskinson, Cardano's founder, maintains his critical view of the XRP community, emphasizing the technical and philosophical differences between Cardano and Ripple.
AlexCardano Foundation has introduced a new offering known as the Identity Wallet, a W3C-compatible mobile wallet that manages self-sovereign identities across Cardano and other blockchain networks.
OliveCardano and Polkadot are teaming up to transform the launch and operation of new blockchains, ushering in a new era in crypto space.
AaronCardano, the proof-of-stake platform founded in September 2017 by Ethereum co-founder Charles Hoskinson, has made significant strides in the world of blockchain and NFTs.
Aaron