Cardano’s ADA experienced a significant drop this month, hitting a 10-month low of $0.279. This was tough news for investors who have been holding onto ADA since March. However, there is a silver lining to this story as ADA has made a recovery back to around $0.37. While it is still lower than it was four weeks ago, this bounce back has sparked renewed interest in the cryptocurrency.
One of the reasons for this renewed interest is Cardano’s upcoming Chang Hard Fork. This upgrade is set to introduce a new governance system that will give the community more control, a step towards greater decentralization. If successful, this upgrade could have a positive impact on market sentiment surrounding ADA.
Currently, the ADA chart is showing signs of a possible five-wave move to the upside. However, the chances of ADA entering a strong bullish phase have decreased due to a recent price dip. Originally thought to be a strong impulse, it now appears to be forming a diagonal structure. To complete this structure, waves three, four, and five need to occur, potentially pushing the price to around 48-49 cents.
There is still some uncertainty surrounding ADA’s price movement, with the need to stay above the recent low at 34 cents. If ADA can maintain this level, it may climb to 43-45.6 cents. However, falling below the support zone of 33.6-35.9 cents could lead to a continuation of the downward trend. The performance of Bitcoin is also crucial as it could influence ADA and other altcoins. A breakout for Bitcoin could boost the entire altcoin market, including ADA.
With bullish technical patterns and a major upgrade on the horizon, ADA could be on the verge of a breakout. Testing the 50-day moving average, a key resistance level, ADA has the potential to push towards the 43 cents range. Breaking above this level could result in even higher gains, making this a critical moment for ADA investors.
