Cardano has experienced noticeable price growth in recent days, reflecting an overall market improvement. Currently, the altcoin is trading at $0.79, representing a 17% increase over the past three days.
Along with favorable market conditions, bullish signals from the network itself indicate that the price of Cardano may be on its way to recovering 40% of the losses it suffered in March.
Are Cardano investors noticing an opportunity?
The MVRV Long/Short Difference indicator for Cardano is currently -89%. This indicates that long-term holders (LTHs) are facing nearly zero profits, with some even incurring losses. On the other hand, short-term holders (STHs) of less than a month are making profits.
This oscillating indicator reaches extreme negative values at the end of a bearish cycle, when STHs begin to sell, and new investors typically step in to absorb the selling pressure.
This dynamics may help keep the price afloat and even push it upward, maintaining positive momentum. The change may play a key role in recovering from recent losses. Bullish technical indicators support Cardano's macroeconomic momentum. The convergence/divergence of the moving average (MACD) indicates that bullish momentum is strengthening.
The increasing green bars on the histogram indicate that the market is experiencing positive momentum, and the possibility of a bearish crossover is still far off.
The current MACD trend supports the idea that Cardano is likely to continue its upward movement. As the market demonstrates increasing bullish strength, the price of Cardano may rise even further. The price of ADA is attempting to recover.
Cardano is currently trading at $0.78, representing a 17% increase over the past three days, bringing it closer to the resistance at $0.80. This recent rally provides another opportunity for Cardano's price recovery after the 40% losses it experienced earlier in March.
If positive momentum continues, Cardano may break through key resistance levels and target higher price points.
Full recovery will likely require Cardano to reach a level of $1.13, but this may take longer. Currently, a realistic goal is to turn the $0.85 resistance into support.
If successful, this will solidify recent gains and prepare ADA for further growth to $0.99, positioning it for sustained recovery. However, if Cardano cannot maintain its growth and falls below $0.74, the altcoin may enter a consolidation period. In this scenario, the price is likely to fluctuate between $0.74 and $0.66, negating the current bullish forecast.