---
title: "Cardano price flashes bullish signal as MDIA indicator soars"
url: https://diffcoin.com/cardano-price-flashes-bullish-signal-as-mdia-indicator-soars/
description: "Cardano price has formed a falling broadening wedge pattern as its MDIA indicator rises, pointing to an eventual recovery"
published: 2025-03-22
updated: 2025-03-22
author: "Mila"
site: "Diffcoin"
---

# Cardano price flashes bullish signal as MDIA indicator soars

Cardano price is slowly forming a popular bullish pattern, pointing to a strong bullish breakout in the next few months or weeks.

Cardano (ADA), a popular proof-of-stake coin, remains in a bear market after plunging by almost 50% from its highest level in November.

However, some on-chain data and technical indicators point to a strong bullish breakout in the coming weeks or months.

Santiment data shows that the Mean Dollar Invested Age, or MDIA has continued rising in the past few months. The 180-day MDIA indicator has jumped to 10.68, up from minus 3.2 in February.

Similarly, the 2-year MDIA indicator has jumped to 103, up from the year-to-date low of 94. This is a popular indicator that has historically accompanied major rebounds. It tracks the average age of each dollar invested into a coin.

![Cardano MDIA](https://crypto.news/app/uploads/2025/03/Cardano-ADA-09.33.25-22-Mar-2025-1024x347.png)

Cardano MDIA indicator | Source: Santiment

Specifically, the indicator looks at whether older and stagnant wallets circulate their tokens into the market. A rising MDIA indicator is often seen as a bullish sign, while a dropping one shows that they are selling their coins.

Cardano, like other cryptocurrencies, has dropped in the past few months. This decline is partly because of profit-taking by some traders after its strong performance in the fourth quarter.

It is also because of the ongoing fear of President Donald Trump’s tariffs.

## Cardano price technical analysis

![Cardano price](https://crypto.news/app/uploads/2025/03/Cardano-Price-1-1024x569.png)

ADA price chart | Source: crypto.news

The daily chart shows that the ADA price has been in a slow downtrend in the past few months. It has dropped from a high of $1.328 in December to $0.70 as it formed a series of lower lows and lower highs.

Most recently, the coin has formed a bearish pennant pattern comprising a vertical line and a symmetrical triangle. This pattern usually leads to a strong bearish breakdown.

On the positive side, the coin has been forming a falling broadening wedge pattern. This pattern comprises two descending and broadening trendlines.

In most cases, it often leads to a strong bullish breakout.

Therefore, the most likely scenario is where the bearish pennant triggers a drop to the wedge’s lower side at $0.555 and then resumes the uptrend. A rebound may see it rise to the psychological point at $1, followed by last year’s high of $1.32, up by 90% from the current level.

[Source link](https://crypto.news/cardano-price-flashes-bullish-signal-mdia-indicator/)