- Summary:
- In this Cardano price prediction, we look at why we should not rule out a pullback in the near term after the sharp rally in the past few days
Cardano price has been an outlier in the past week’s bloodbath. The ADA price has jumped by more than 21% in the past seven days, bringing its total market capitalization to more than $40 billion. This makes it the third-biggest cryptocurrency in the world after Bitcoin and Ethereum.
Cardano price rally explained: Cardano has been on an upward trend in the past few months. This year alone, it has jumped by more than 475%. Notably, it has risen by more than 6,700% from its lowest price in 2020. The recent uptrend is mostly because of the Mary upgrade that will launch today.
This upgrade will make the network more efficient and more diverse. On the latter, it will help to support stablecoins like Tether. Also, it will help them create the so-called non-fungible coins. In the past, cryptocurrencies tend to rally ahead and shortly after a major upgrade.
Cardano price prediction
Last week, I predicted that the Ada price was extremely bullish even as the rest of the cryptocurrencies appeared to struggle. I based this on the bullish pennant pattern that was forming in the daily chart. This prediction turned out to be true and the currency has jumped sharply.
Today, the price has continued to rally ahead of the Mary upgrade. It is being supported by the 25-day and 15-day exponential moving averages. The Relative Strength Index (RSI) is still above the overbought level.
Therefore, while the uptrend will remain in the near term, we cannot rule-out a pullback as traders buy the rumour and sell the news. If this happens, the price could retest the support at $0.9823.
ADA price chart
