While most altcoins struggle to keep the bears at bay, Cardano (ADA) has bucked the trend and gained more than 26% during the past week. ADA’s spike, which goes against the market conditions, comes as smart money starts to enter the coin. On the higher time frames, the token is showing a replication of the 2020-2021 pattern, which resulted in a massive bull run.
ADA gains more than 26% in bearish altcoin market
In a broader altcoin market infested with bears, ADA has shown immense strength by gaining more than 26% during the past week alone. ADA, which was trading at around $0.153 last week, has recovered and reached $0.194, July 4 levels.
How? Smart money has been entering ADA while the rest of the market suffers. Smart money typically enters the market before the broader market recognizes a potential trend reversal. Large investors, institutions, whales, and experienced traders accumulate assets quietly during periods of fear, low sentiment, or weak price action because they aim to buy at discounted prices before retail investors return.
Since these participants use extensive research, on-chain data, and macro analysis, they often position themselves early rather than chasing momentum after prices have already surged.
ADA crosses above 50-day MA as broader market sees 2020-2021 rally reciprocation
During this window of smart money entering the market, ADA crossed above the 50-day MA, which is at $0.16. Currently priced at $0.194, the token is taking huge strides as it hovers just below the $0.2 psychological resistance level. Once the token crosses above this level, its next target would be $0.23.
When the short-time frame charts show a bullish overview, ADA is showing a much bigger and bullish landscape on the weekly chart.
An analyst who goes by the pseudonym Javon stated that it was reciprocating the 2020-2021 pattern, which resulted in a massive bull rally. With the token taking the same route, the market could be anticipating history to repeat.
