Cardano (ADA) seems to be trying to regain the profitability that vanished due to the recent price pullback. With market and investor support, ADA could potentially rise from a falling triangle formation.
Cardano Has Growth Potential
Cardano’s price appeared to be in a downtrend until recently. Efforts to recover last month ended in failure, generally indicating a bear market.
Despite this, the situation could change following Bitcoin‘s upcoming halving.
On the other hand, considering the last two weeks, ADA investors’ faith in the cryptocurrency seems significantly stronger compared to the first quarter.
The average coin age also stands out as an important metric. It reveals the average age of all circulating supply of a cryptocurrency and provides information about the network’s activity level and the “hodl” approach.
An increase in this average indicates hodling, while a decrease shows trading activity between addresses. During the first quarter, this indicator only increased by 6.6%. However, it has increased by 2.4% in just the last two weeks, suggesting growing confidence in ADA.
Moreover, a potential price rally could likely bring profitability to the ADA supply, as there have been recent losses in ADA supply.
Generally, having more than 95% of the supply in profit is considered a trigger for a market response. The absence of such a profitable situation on the Cardano side indicates that there is still a long way to go for a market response to form.
ADA Price Forecast
As of writing, Cardano (ADA) found buyers at $0.47 following a 3% rise.
The altcoin has been moving within a descending triangle for over a month. This bearish pattern, known as a falling triangle, is marked by downward-trending lines and can be interpreted as the start of a potential reversal of the downtrend.
As time progresses within the channel, an upward breakout is also expected. Such a breakout could herald a potential bull momentum.
A similar situation is occurring on the ADA side. ADA has visibly bounced from the lower trend line within the same chart pattern. According to the chart, retesting the upper trend line and a potential breakout could lead to a 24.8% rise to $0.66.
However, if Cardano’s price falls below $0.40 or fails to surpass $0.50, it could deviate from this bullish outlook, potentially leading to a drop to $0.35.
