• Cardano (ADA) price nosedived in April, however, a rebound move is currently being plotted.
• MVRV, Chaikin Money Flow all point to a bullish ride ahead.

While April saw Cardano (ADA) losing 40% of its value, recent bullish patterns in the blockchain hint at a possible recovery to a new all-time high. In this article, we’ll look into the bullish patterns on Cardano’s daily chart and see the possibility of ADA regaining from its April crash.

Cardano’s Journey to Recovery

The price of ADA fell drastically on April 12, shedding over 40% at the time of the crash. According to statistics from IntoTheBlock, over 60% of investors were out of money, meaning they were losing money. Following the crash, ADA became a topic for discussion, which led to an increase in its social volume.

Furthermore, ADA’s weighted sentiment remained stuck in the negative zone, indicating persistent bearish sentiments from investors. However, there is hope for ADA’s recovery soon due to the emergence of a wedge pattern on its daily chart. Typically, a wedge pattern indicates a potential reversal or continuation of price direction. 

For ADA, since its price dropped in April, the token has consolidated inside the pattern. Notwithstanding, as of this writing, ADA is attempting to remain in this pattern, indicating a potential recovery soon.

Another indicator that hints at a potential bullish movement for ADA is the MVRV. During the April crash, the metric nosedived sharply but improved over the next few weeks. Also, ADA’s MVRV remained high, meaning the token was used frequently in transactions within a set timeframe.

Moreover, the Chaikin Money Flow (CMF) showed encouraging growth. This suggested that there was a good likelihood of a price increase. However, the Relative Strength Index (RSI) went in the other direction, which may prevent ADA’s upward movement.

Critical Decisions Ahead of ADA

At press time, ADA is trading at $0.4554, demonstrating a 1% decline in the past 24 hours. The market capitalization also declined by 1% to $16.2 billion, while trading volume increased by 70.6% to $416 million. The increase in trading volume suggests that investors are still very interested in acquiring the cryptocurrency.

In the coming days, ADA must move above $0.467 if its price gains bullish momentum because liquidation would rise sharply. Usually, price corrections follow a rise in liquidation. ADA’s first step toward price recovery would be a break above the $0.467 to the $0.5 mark.

While ADA is on track for a major price correction, whale transactions on ADA have increased substantially. Echoing earlier coverage by Crypto News Flash, investors holding between 100 million and 1 billion ADA tokens have increased their holdings by approximately 11% over the last 30 days. This trend suggests that major investors are buying the dip in anticipation of a future price recovery.

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