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Cardano Price Likely to Jump 20% as Indicators Hint at Upcoming Bullish Momentum

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VOC, Voice of Crypto, ADA

September was by no means a rosy one for Cardano in terms of price.

The cryptocurrency started the month on relatively good terms, hitting a high of about $0.52 in the first half. However, after a massive selloff, the price of ADA crashed to a low of $0.42 in the space of two weeks.

ADA Price Action

In contrast to its recent price action, Cardano has been observed to be one of the strongest in the market in terms of fundamentals. This is because of its deeply rooted ecosystem and the partnerships the Cardano foundation has managed to broker over the years. Overall, not even the bear market in 2022 has been able to shake this fact.

Visual Data from CoinMarketCap, showing basic data on Cardano 

Visual Data from CoinMarketCap, showing basic data on Cardano | Source: CoinMarketCap

The price of Cardano is currently down by 0.39% over the last day but is up by 1.2% over the last seven. It currently trades at around $0.43 at the time of writing and is recovering from the massive selloff it experienced throughout September.

However, with the crypto market and bitcoin’s price fluctuations continuing to impact the price of Cardano negatively, it is easy to predict a significant rise in its price over the foreseeable future.

Technicals On Cardano

From a long-term perspective,  the price of Cardano is trading inside a bullish wedge, expecting a breakout at any time

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Chart of ADA versus USDT, showing bullish wedge 

Chart of ADA versus USDT, showing bullish wedge | Source: Tradingview

This breakout will likely happen around the $0.46 level before a retest and then more bullish momentum.

The relative strength index on the 4-hour chart also shows slightly oversold conditions as the RSI line trades below the 50 mark. This further buttresses the point that the price of Cardano may break out of its consolidation and start to trend upwards to the $0.55 level.

Chart of ADA against USDT showing slightly oversold conditions on the RSI 

Chart of ADA against USDT showing slightly oversold conditions on the RSI | Source: Tradingview

So far, on the relative strength indicator, a crossover seems to be on its way to happening, indicating that the bulls may be preparing to take control of the market.

The possibility of a +20% increase isn’t far-fetched by any means. Over the last year, the price of Cardano increased by more than 10% numerous times.

One of the most prominent examples of this was around March 16th, when Cardano’s price increased by more than 50% from March 16th to April 5th.

Chart of ADA versus USDT showing 51% increase early this year

Chart of ADA versus USDT showing 51% increase early this year | Source: Tradingview

In the foreseeable future and under more bullish conditions, the price of Cardano may even outdo these price jumps, owing to the development activity and some of the more advanced upgrades the network has undergone this year alone.

 

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR  (do your own research)

 

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Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.

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