- Cardano’s price correction finds support at the 61.8% Fibonacci retracement level amid Bitcoin’s sustained strength above $60,000.
- The MVRV Ratio for Cardano dips below 22%, historically signaling significant price rebounds.
- Technical indicators suggest potential bullish momentum ahead.
The recent correction in Cardano’s (ADA) price trajectory has been a focal point for investors. Following a peak at $0.81, the asset experienced a notable 50% decline, finding support at $0.4.
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However, amidst Bitcoin’s sustained strength above the $60,000 mark, sentiment within the altcoin market shifted towards a local bottom formation. Consequently, Cardano surged to $0.472, aiming to establish a foothold above the 61.8% Fibonacci retracement level, historically significant as a support zone during corrections.
An analyst points to key indicators suggesting a forthcoming price surge for Cardano. The Market Value to Realized Value (MVRV) Ratio, a metric gauging ADA holders’ profit or loss status, has recently dipped below 22%.
This occurrence has historically preceded significant price increases, with past instances resulting in upticks of over 75%. The recurrence of this dip below the -22% threshold indicates the potential for another notable price rebound in Cardano’s native token.
Looking ahead, the impending Bitcoin halving event could catalyze renewed recovery in the altcoin market, potentially propelling Cardano’s price beyond overhead resistance levels. Analysts eye targets of $0.683 and $0.81 if such a scenario materializes.
Technical indicators further support the possibility of a bullish trend. The daily Relative Strength Index (RSI) slope suggests a potential relief rally, while the 200-day Exponential Moving Average (EMA) on the weekly chart bolsters support around the $0.445 mark.
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