Cardano ($ADA) has reached a technical signal that might lead to a big price increase in the near future, when the cryptocurrency market sentiment has improved and the price starts to rise. Cardano, according to cryptocurrency researcher Ali Martinez, is on the verge of confirming a head and shoulders pattern, a charting configuration he believes could lead to a 44% breakout, potentially catapulting ADA prices to $0.60.
It is worth mentioning that a head and shoulders pattern predicts a bullish-to-bearish trend reversal, while an inverted predicts a bearish-to-bullish reversal. A baseline with three peaks, one larger than the other two, resembling a head and two shoulders, characterizes the pattern. This is considered one of the most reliable trend reversal patterns.
The head and shoulders pattern may indicate that Cardano is preparing for a bullish turnaround and a significant price increase. According to CryptoGlobe, Cardano whales recently had a $218 million buyout party, purchasing a total of 560 million ADA tokens.
This pattern indicates a growing interest in Cardano among institutional investors and wealthy individuals, implying a bullish prognosis for the digital asset. Cardano is increasingly gaining popularity as a competitor to Ethereum (ETH) and other important industry participants.
According to Martinez, the ADA price might launch a bull run if it manages to break through a key level that is now hosting a “colossal sell wall”, consisting of 3.85 billion tokens being sold. This barrier lies between $0.40 and $0.42. Notably, the cryptocurrency community anticipates that the price of ADA will drop in April, despite its growing popularity and whales hoarding the network’s native coin.
Users making price forecasts project that ADA will end April trading at a price of $0.37 per token, a sizeable drop from its current price level.