The cryptocurrency market maintains its bullish momentum following the Bitcoin price surge to a new high. Most major altcoins mimic the BTC’s trend, while some, like ADA, show the potential for impending breakout. A crypto analyst highlights such a dream setup of bullish contrarians as Cardano price set to beach key continuation pattern.
By press time, the ADA price trades at $1.08 with an intraday gain of 0.64%. According to Coingecko, the asset’s market cap stands at $39.1 Billion, while the trading volume is at $1.7 Billion.
- A symmetrical triangle pattern drives the current sideway action in Cardano price.
- The ADX indicator drop of 38% hints the sideways action allows buyers to regain buying momentum.
- A sharp rise in ADA’s social volume and negative sentiment has often resulted in notable price increases.
Cardano Price Faces Bearish Sentiment, but History Favors Contrarian Bulls
In a recent tweet, renowned crypto analyst Ali Martinez highlights the market sentiment surrounding Cardano coin has taken a bearish turn, according to recent on-chain data shared by analyst Ali Martinez. This shift reflects growing uncertainty in ADA’s price trajectory, but seasoned bullish contrarians view it as a potential buying opportunity.
The chart signals increasing social volume and negative sentiment for Cardano, which may indicate an oversold market condition. Historically, such setups are ideal for bullish contrarians—investors who go against prevailing market trends, anticipating a reversal.
Triangle Pattern Hints ADA’s Next Breakout Rally
Since last week, the Cardano price has shown a low volatile sideways trend wavering around the $1.1 level. The consolidation projected narrow candles with long wicks, indicating a conflict between broader market recovery and ADA Price facing overhead supply.
A look at a 4-hour chart shows the selling pressure that emerged from the resistance trendline of the triangle pattern. The chart setup is characterized by two converging trendlines, which theoretically provide a short pause for buyers to revive bullish momentum.
If the theory holds true, the Cardano price could breach the overhead trendline, bolstering a rally to the $1.5 barrier.
Conversely, if sellers defend the resistance trendline, the altcoin will extend the lateral trend till the month’s end.
Also Read: Bitcoin Price Target $120K Breakout Amid Corporate Adoption & Whale Activity
