Earlier this week, the cryptocurrency market witnessed a sudden sell-off wave that brought down the price of Bitcoin (BTC) from its all-time high of $69,000. The overall supply spread to altcoins, including Cardano (ADA), which recorded a drop of over 10% on March 5th.
Signs of Accumulation in ADA
However, experts analyzing daily charts also foresee a critical rejection indicating that buyers are defending their new support levels. Accumulation at the market’s bottom could be a significant signal of a sustainable recovery. The native cryptocurrency of the Cardano ecosystem, ADA, has shown steady growth over the past five weeks, rising from $0.447 to $0.79.
This 78% increase, supported by occasional pullbacks and rising volume, could reflect ADA’s price witnessing sustainable growth. Analysis of the daily chart for the cryptocurrency suggests that this rise could be the development of a bullish reversal pattern known as the cup and handle breakout, which started with the neckline break on March 1st.
Cardano Price Forecast
The mentioned breakout could indicate that buyers are emerging from a long accumulation phase and a new rally is on the horizon. Despite recent selling pressure in the market, the ADA price has shown sustainable performance above the breached neckline of $0.68. In the last two days, the altcoin has seen an 8% increase, trading at $0.75. Under the influence of this pattern, buyers could potentially move the Cardano price to a theoretical target of $1.146, marking a 51% potential growth.
Contrary to these assumptions, a break below the $0.68 level could signal a weakening of the upward momentum and trigger a new correction trend. Consequently, despite the sudden drop in Bitcoin, the cryptocurrency market remains hopeful with Cardano’s steady growth and performance above the resistance defined by the cup and handle breakout pattern, but experts warn that a break below the $0.68 resistance could trigger a correction trend.
