Year-to-date, Cardano (ADA) price has dropped by roughly 37%. However, the altcoin has surged by 13.40% in the last seven days, showing promising signs of a long-term rally.
Cardano saw a significant surge between December 2020 and May 2021, driven by a bullish signal when the 50-day EMA crossed above the 100-day EMA. This EMA alignment seems to be repeating, suggesting another major price breakout.
If Cardano's price breaks out of the descending channel, ADA could climb 500% within six months, reaching $2.40. The 30-day MVRV ratio, currently at 11.95%, also supports this bullish outlook.
Another positive indicator is the Relative Strength Index (RSI) on the ADA/USD 3-day chart. The RSI has risen above its neutral midpoint, indicating bullish momentum.
If this momentum continues, Cardano's price could reach $0.70 before 2024 ends. However, overbought conditions could lead to a drop to $0.27.
