The price of Cardano (ADA) has experienced a decline in recent weeks. Following a peak at a 23-month high at $0.808 on March 11, the price of ADA has fallen by over 28%, and it is now hovering just below the $0.60 level. Notably, Cardano has underperformed compared to its competitors, slipping to the 10th position among the largest cryptocurrencies by market cap.
However, a crypto analyst, known as Trend Rider (@TrendRidersTR) on X, has declared that ADA is showing clear signs of a bull run based on technical analysis of its Relative Strength Index (RSI) and Simple Moving Average (SMA) crossovers.
What This Means For Cardano Price
According to Trend Rider’s recent post on X, Cardano’s current market behavior mirrors a rare pattern in the one month chart (ADA/USD) observed only once before, which led to a significant price surge from $0.05 to $3.00.
The analyst emphasized, “ADA’s undeniable bull run is here. With its second RSI crossover in history, it’s reminiscent of when prices soared from $0.05 to $3. This rare event, marking a potential trend shift as the RSI crosses its SMA, has flawlessly predicted past cycles shifts at it’s early stages.”
The analysis presented by Trend Rider focuses on the RSI, a momentum oscillator that measures the speed and change of price movements, and its crossover with the SMA, a common trading signal interpreted as a potential bullish or bearish market indicator.
The post details three critical phases in Cardano’s recent market activity. The first crossover occurred shortly after the COVID-19 pandemic onset when ADA traded at $0.19, marked by a substantial price increase following the crossover event.
At the end of the 2021 bull run, a bearish crossover took place that heralded a prolonged bear market. “Notice how perfect the bearish crossover anticipated the bear market. This is an extremely strong validation for this indicator. Making it very relevant to predict ADA long term cycles,” the analyst states.
The second bullish crossover of the RSI with the SMA occurred in October and November 2023, this event was initially met with market rejection a few months earlier, adding credibility to the indicator’s reliability in predicting long-term market trends.
Trend Rider concludes, “The RSI and its SMA crossovers are an extremely reliable source to identify ADA bull runs and bear markets at its early stages.” This…
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