Cardano (ADA) Price Analysis: Bullish Divergence vs. Bearish Triangle
Cardano (ADA) has been making headlines recently, with analysts scrutinizing its price action following the Chang upgrade. While some see a potential for significant growth, others are cautious due to conflicting technical signals.
Bullish Divergence Sparks Hope
Analyst Dan Gambardello spotted a bullish divergence on the ADA/BTC chart, similar to a pattern that led to a 1,100% rally in 2020. He believes a similar surge, potentially reaching 1,000%, could be in the cards.
The potential upside would take ADA to around $4.1, but it hinges on breaking through current resistance levels. If that doesn’t happen, the divergence could be a false signal, resulting in a bull trap.
Bearish Triangle Raises Concerns
Meanwhile, the ADA/USD pair has formed a descending triangle, a bearish pattern indicating intensified selling pressure. Analysts warn that if this pattern plays out, ADA could plummet by over 71%, reaching a target near $0.094.
The broader market environment, including Bitcoin’s influence and macroeconomic conditions, adds complexity to the situation. While a bullish breakout could attract buyers, caution is advised as external factors could limit ADA’s upward momentum.
As with any cryptocurrency, it’s essential to conduct your own research and carefully consider both bullish and bearish perspectives before making any investment decisions.
You can check the latest ADA price on CoinMarketCap or CoinGecko.
