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Cardano Breaks Falling Wedge Ahead of Major Upgrade–Rally to $0.8 Imminent?

Last Updated July 2, 2024 2:32 PM
Nikola Lazic
Last Updated July 2, 2024 2:32 PM

Key Takeaways

  • Cardano’s price shows potential for a bullish reversal.
  • Chang Hard Fork will soon enhance Cardano’s governance features.
  • Analysts predict a significant rebound, crucial support at $0.4251.

A falling wedge pattern seen on Cardano’s daily chart suggests a significant rebound in its price movements. It could indicate a potential price bottom and a bullish reversal. ADA is trading at its crucial support level above $0.40 since the start of July, hinting that the expected rebound could have already started. 

Failure to hold this level could lead to more downsides; however, considering the length and depth of its last downtrend, the likelihood of a starting bull phase is higher. With the Chang Hard Fork anticipated to launch soon, this may be a major catalyst for the price rally aside from the mentioned technical pattern. 

Chang Hard Fork Just Around The Corner 

The Cardano Chang Hard Fork is expected to happen soon, with the Cardano Node likely to reach version 9.0, making the network ready for the hard fork. This event, part of Cardano’s Voltaire phase, is set to introduce significant governance features, including decentralized voting and treasury management, marking a crucial milestone in Cardano’s development.

Charles Hoskinson, Cardano’s co-founder, indicated that the hard fork would occur once 70% of the Stake Pool Operators (SPOs) have installed the new node. The Voltaire phase aims to decentralize Cardano fully, transitioning the network’s control to its community.​ 

Analyst Are Bullish

Analyst Captain Faibik highlighted a falling wedge pattern in Cardano’s daily chart, indicating a potential price bottom and a bullish reversal. Faibik predicts a 72.84% surge from the current price, urging investors to watch this area closely.

Similarly, analyst Zayk Charts also identified the falling wedge pattern, forecasting a 40% to 50% breakout for Cardano. Analyst Crypto Feras emphasized a crucial support level at $0.4251, warning that failure to hold this level could lead to a decline to $0.24. Despite underperforming compared to other altcoins, Cardano shows potential for a significant rebound.

Can ADA Revisit $0.80?

Cardano‘s price has been in a downtrend since peaking at $0.80 on March 14. It dropped to $0.40 by April 13, then rebounded to $0.44 and reached $0.53 on April 23, encountering resistance from a descending trendline starting from the March high. Subsequently, the price fell again, repeatedly testing the $0.42 support level and establishing a horizontal trading range between $0.42 and $0.51.

ADA
ADAUSD | Credit: Nikola Lazic/Tradingview

On June 17, it breached this horizontal support and fell to a low of $0.35 on June 22, showing signs of a potential reversal. This low interacted with the 0.786 Fibonacci level, followed by a 10% rebound.

The daily chart RSI dropped to the oversold zone at 27%, suggesting ADA might be ready for a major recovery. The daily chart MACD also indicates a bullish convergence.

Further confirmation for a major recovery would include a rise past the $0.50 mark and establishing a higher low during the downturn. If these conditions are met, a sustained uptrend potentially leading to $1 could be expected.

If this was the completion of its larger wave 2 correction, the next uptrend could be its wave 3, which usually comes as a 1.168 Fibonacci extension. If this plays out, ADA could slightly exceed $1 mark at the end of this advancement. 

Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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