Crypto analyst Ali Martinez has predicted an outstanding long-term price for Cardano (ADA), although subject to some downside before the target is reached. The Cardano (ADA) price is currently declining, down by 4.2% in the past 24 hours and 16.7% in a larger timeframe. The crypto did manage to turn bullish for a few hours yesterday, jumping 14.6% from a low of $0.4727 to $0.5421.
Most of this price gain has been shed off and the crypto is now trading at $0.5079, confirming an ongoing consolidation. However, according to crypto analyst Ali Martinez, Cardano’s current consolidation mirrors that of its 2018-2020 phase, which is preparing the groundwork for a strong bull run.
ADA Mirroring Its Past Performance
Cryptocurrencies are known to repeat previous price actions, giving analysts an idea of what to expect based on the outcome of the previous performance. In this vein, a Cardano technical analysis shared on social media platform X by Ali Martinez indicated that ADA’s current consolidation is reminiscent of ADA’s price action whose breakout led to a 2,980% price surge.
According to the weekly timeframe chart shared by Martinez, ADA consolidated for 665 days between 2018 to 2020 before going on a price surge to reach $3.058, its current all-time high. If a repeat of this pattern were to successfully play out, we might see ADA continue to consolidate around this level until April. Consequently, a repeat of a 2,980% price surge from the current price would put a price target around $15.
So far, #Cardano price action is echoing its 2018-2020 pattern!
If this trend continues, we might see $ADA consolidating around its current levels until April, setting the stage for a potential resumption of the bull run. pic.twitter.com/bMy8zrxQIp
— Ali (@ali_charts) January 8, 2024
ADA price at $0.5 | Source: ADAUSD on Tradingview.com
Current State Of Cardano
Cardano went through a price surge in the last quarter of 2023, mirroring a surge in July 2020. As a result, ADA recorded a 173% gain from $0.2435 in October to a yearly high of $0.6655 in December. However, the crypto has been on a decline since then. A recent larger decline among altcoins has also contributed to a further price decline.
On-chain data from IntoTheBlock shows that 47.45% of ADA addresses are currently making a profit. Notably, an interpretation of Martinez’s technical analysis of Cardano points to this number stalling at least until April. For long-term believers in ADA, the current consolidation is an opportunity to increase their holdings for the next bull run.
Cardano still remains one of the most actively developed blockchain ecosystems, and a new report shows that development activity has outpaced that of Ethereum and Avalanche in the past 30 days.
A continuation of this growth coupled with a few other bullish market factors like the potential approval of Spot Bitcoin ETFs in the US could lead to ADA going on a sustained price surge before April.
Featured image from The Economic Times, chart from Tradingview.com
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Author: Scott Matherson