Cardano’s (ADA) current price is trying to regain all the losses it suffered in the last month due to the drawdown.
With support from the investors and the market, ADA is likely to break free of its falling wedge.
Cardano has Room to Grow
Cardano is in a downward trend at the momentThe various recovery attempts have failed in the last month. The broader market signals have been bearish. This will probably change as the Bitcoins halving Event is just around the corner.
ADA’s convictions are also stronger in Q2 than they were during Q1. The Mean Coin Age (which represents the age average of all coins for a particular cryptocurrency) is on an upward trend.
The indicator gives insight into network activity and hodling. The decline in the indicator indicates HODLing and an increase suggests asset movement between addresses. MCA rose just 6.6% in Q1, but by 2.4% over the past two weeks.
![Cardano Mean Coin Age.](https://beincrypto.com/wp-content/uploads/2024/04/Cardano-ADA-16.50.17-19-Apr-2024-850x288.png)
The current level of conviction is higher than ever before.
Click Here to Read More Cardano: How to Buy and All You Need To Understand
The rally is also likely to bring profit for the ADA stock, which has suffered losses since a long time. Around 50% of the circulating ADA has losses. This means that there is significant growth room.
![Cardano Supply In Profit.](https://beincrypto.com/wp-content/uploads/2024/04/Cardano-ADA-16.48.10-19-Apr-2024-850x288.png)
In general, if the profit exceeds 95%, it is deemed to be a top of market. Since Cardano has yet to see such profitsA market peak is still far away.
Price Breakout Prediction is Possible
Cardano is currently trading for $0.46 as of the date this article was written. Since over a week, the altcoin’s movement has resembled a downward wedge. This bullish chart pattern, also known as the falling wedge, is marked by trend lines that slope downward and are converging. It signals a possible downtrend reversal.
As the pattern develops, it is common to expect a breakout on the upside. This indicates a potential bullish momentum change.
ADA is in this condition, as the altcoin successfully bounced of the lower trendline. The pattern indicates that a potential breach of the upper line will result in a surge to $0.66, or a 24.8% increase.
![ADA/USDT 1-day chart.](https://beincrypto.com/wp-content/uploads/2024/04/nxRKUBd9-850x381.png)
Click Here to Read More Cardano (ADA) Price Prediction 2024/2025/2030
If the trendline is not broken, then it will be a positive sign. Cardano price drops below $0.40 If the price of ADA does not exceed $0.50 it may invalidate bullish theory. ADA will then fall to $0.35.
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