Cardano ($ADA) has reached a technical signal that might lead to a major price increase in the near future, when cryptocurrency market sentiment has improved and prices have begun to rise. Cardano, according to cryptocurrency researcher Ali Martinez, is on the cusp of confirming a head and shoulders pattern, a charting configuration that he believes might lead to a 44% breakout, potentially catapulting the price of ADA to $0.60.
It’s worth mentioning that a head and shoulders pattern forecasts a bullish-to-bearish trend reversal, whilst an inverted one predicts a bearish-to-bullish reversal. A baseline with three peaks, one bigger than the other two, resembling a head and two shoulders, characterizes the pattern. It is regarded as one of the most dependable trend reversal patterns.
The head and shoulders pattern might indicate that Cardano is preparing for a bullish turnaround and a significant price increase. According to CryptoGlobe, Cardano whales just went on a $218 million buying binge, purchasing a total of 560 million ADA tokens.
This pattern indicates a growing interest in Cardano among institutional investors and wealthy people, implying a bullish prognosis for the digital asset. Cardano has progressively gained popularity as a competitor to Ethereum (ETH) and other significant industry participants.
According to Martinez, the price of ADA might launch a bull run if it succeeds to break through a crucial level that now hosts a “colossal sell wall,” made up of 3.85 billion tokens being sold. This barrier is located between $0.40 and $0.42. Notably, the cryptocurrency community anticipates that the price of ADA will fall in April, even as its popularity continues to expand and whales hoard the network’s native coin.
Users that made price forecasts projected that ADA will conclude the month of April trading at $0.37 per token, a considerable decrease from its current price level.