Cardano (ADA) Shows Signs of Recovery, As Analyst Predicts Short-Term Rally

Cardano rebounds 5% after April slump, long-term holders are confident despite technical indicators suggesting potential for short-term gains followed by a bearish pullback.
Cardano Price Analysis
Cardano Price Analysis

Key Insights

  • Cardano's price rose 5% in the last 24 hours, offering hope after a 19.3% decline in April.

  • While only 35% of holders are in profit, over 65% of them have been holding for more than a year, indicating long-term confidence.

  • Data from Santiment suggests a decrease in mid-tier holders (10,000-100,000 ADA) and an increase in large holders (1 million+ ADA).

  • Moreover, Ali Martinez sees a buy signal on Cardano's TD Sequential indicator, suggesting a potential 1-4 day upswing.

  • Despite the upswing, Cardano's RSI is below 50, indicating that the bears might still be in control.

Cardano went through some pretty rough weather in April 2024 and is only attempting to make its way upwards along with the rest of the crypto market.

As shown by data from Coingecko, the cryptocurrency has declined by around 19.3% and is even down on the weekly timeframe as well.

However, better days might be inbound.

<div class="paragraphs"><p>Cardano’s price action</p></div>

Cardano’s price action

This time around, Cardano has gone up by an impressive 5% uptick in the last 24 hours since writing, giving investors a glimmer of hope in an otherwise bleak outlook.

Cardano HODLers in Profit

Despite Cardano’s discouraging performance in April, IntoTheBlock data shows some pretty interesting new developments.

To begin with, the percentage supply of Cardano HODLers in profit has been on the rise as of late, with a total of 35% holders in profit, 6% at break even, and around 59% running at losses.

<div class="paragraphs"><p>Cardano metrics</p></div>

Cardano metrics

These figures aren't so great in terms of bullishness but are certainly a step up from only 28% of holders in profit during April.

Moreover, data from IntoTheBlock also shows that more than 65% of Cardano holders have been keeping their tokens for more than a year and around 28% of holders between 1 - 12 months.

This suggests strong confidence in the prospects of the cryptocurrency, from holders of all classes.

<div class="paragraphs"><p>A change of hands</p></div>

A change of hands

Data taken from Santiment also shows a steady decline in the number of Cardano holders with 10,000 to 100,000 tokens (red line), as well as an almost sharp increase in the number of holders with between 1 million to infinity coins (orange line).

This indicates that there is a confirmed shift between sharks and whales, as well as increased confidence in the cryptocurrency’s prospects.

On-Chain Perspective

Ali Martinez in a recent tweet, referenced Cardano, as well as a potential turnaround for the cryptocurrency.

The analyst highlighted the TD Sequential indicator on ADA’s daily chart for his outlook, stating that the indicator now shows a buy signal.

<div class="paragraphs"><p>Cardano buy signal</p></div>

Cardano buy signal

Ali opined that the TD sequential indicator "anticipates" a relief rally that might take Cardano up between one to four days (analysis shows a target of $0.68).

<div class="paragraphs"><p>Cardano’s price outlook</p></div>

Cardano’s price outlook

This outlook is supported by the position of Cardano’s RSI, which currently shows a reading of 44, and is trending underneath the neutral-50 threshold.

We can already see signs of an incoming rebound from the ascending trendline shown in the chart above, as well as an incoming attempt to break above the medium-term moving average at around $0.4858.

Cardano currently trades at $0.4576 and may need to see the bulls push the RSI readings further up above the 50 threshold, to confirm bullish control and the fulfilment of Ali's outlook.

As investors, keep an eye out for what happens between $0.4184 and $0.4858.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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