Cardano’s price correction finds support at the 61.8% Fibonacci retracement level, while Bitcoin remains strong above $60,000. The MVRV Ratio for Cardano dips below 22%, historically indicating significant price rebounds. Technical indicators hint at potential bullish momentum ahead.
Investors have been closely watching the recent downturn in Cardano’s (ADA) price. After reaching a high of $0.81, the asset saw a significant 50% drop, stabilizing at $0.4.
Cardano Gains Momentum Amid Bitcoin’s Strength
Amid Bitcoin’s sustained strength above $60,000, sentiment in the altcoin market shifted towards a potential bottom formation. Consequently, Cardano surged to $0.472, aiming to establish support above the 61.8% Fibonacci retracement level, historically significant during corrections.
Analyst Predicts Price Surge: An analyst highlights key indicators suggesting an impending price surge for Cardano. The Market Value to Realized Value (MVRV) Ratio, which measures ADA holders’ profit or loss status, has recently dropped below 22%.
The last time #Cardano's MVRV Ratio dipped below -22%, $ADA's price soared by over 75%. With the #ADA MVRV Ratio back under -22%, we could see another impressive rebound! pic.twitter.com/ABf0mp4pR4
— Ali (@ali_charts) April 19, 2024
This trend has historically been followed by substantial price rises, with previous occurrences leading to increases of over 75%. The recent dip below the -22% threshold suggests the possibility of another significant price rebound in Cardano’s native token.
Potential Recovery Ahead for Cardano
Analysts anticipate that the upcoming Bitcoin halving event could trigger a renewed recovery in the altcoin market, potentially pushing Cardano’s price beyond overhead resistance levels.
Targets of $0.683 and $0.81 are eyed by analysts if this scenario materializes. Technical indicators also support the possibility of a bullish trend. The daily Relative Strength Index (RSI) slope hints at a potential relief rally, while the 200-day Exponential Moving Average (EMA) on the weekly chart provides support around the $0.445 mark.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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