Compass Investments

– Cardano’s native blockchain token, ADA, has lost about 35% of its value this year and is currently trading below the $0.38 and $0.4 mark, but according to one cryptocurrency analyst, it could soon start to rise and reach the $5 mark. According to him, the cryptocurrency could soon start rising and reach the $5 mark.

According to TradingShot, a cryptocurrency trader at TradingView, Cardano just formed a bullish cross on the weekly logarithmic moving average divergence (1W LMACD), giving the strongest buy signal in the last year.

This bullish pattern appeared for the first time since October 2023, indicating a significant change in momentum. In addition, traders noted that ADA has been consolidating below its 50-week moving average since May, which could be a harbinger of a breakout.

An analyst noted that the current situation with ADA, where the weekly relative strength index (RSI) has been fluctuating since May, is similar to the previous bull cycle, where a bullish megaphone appeared on the weekly LMACD bull cross, a bottom formed after the weekly MA50/ MA100 bull cross, and the weekly RSI consolidated.

he emphasized.

Interpretation by traders of this chart suggests that the price of Cardano may soon begin a new parabolic growth and reach the mark of $5 – the top of the cycle.