Cardano (ADA) is flashing bullish signals once again. According to prominent crypto analyst Guy Turner, the digital asset is hinting at a potential 70% price surge. However, it is not all smooth sailing, as a lurking factor could cast a shadow on the bullish prediction, and potentially send the digital asset down.
Turner, host of the popular Coin Bureau YouTube channel, shared his insights in a recent video. He pointed out that the crypto market has seen notable surges over the last year. However, these surges don’t extend to the entire market as Cardano (ADA) has lagged behind its counterparts.
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Turner pointed out that the developments, updates, and announcements within the Cardano ecosystem over the past year can be seen in ADA’s price. He showed that ADA hit its low from last year in June after the SEC labeled it a security.
It stayed low until October when the recovery began, and Turner pointed out that most altcoins had similar behavior, rising in October. He believes ADA’s weekly chart is drawing a “bull flag” pattern, potentially propelling its price towards $1, the next major resistance level.
However, Turner pointed out that this surge of approximately 50% was small compared to other altcoins, like Solana (SOL), which went up by over 10x in 2023. He also analyzed Cardano’s fundamentals, showing that the altcoin saw an increase in supply with relatively little sell pressure. He noted that this pressure comes from the three main entities behind Cardano, including Input Output Global (IOG), Emurgo, and the Cardano Foundation.
All three organizations hold significant ADA reserves, which they may sell to fund their operations. He pointed out that the Cardano Foundation’s annual report confirms this, revealing that ADA constitutes a major portion of its treasury. With growing headcount and expenses, selling some ADA might be inevitable.
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While Turner acknowledges this as a short-term concern, he emphasizes the long-term bullish implications. Increased spending by these entities signifies active development and infrastructure growth, ultimately benefiting Cardano’s trajectory.
While the potential for a significant price increase is enticing, the short-term sell pressure from major stakeholders complicates things. Turner pointed out that the supply and demand dynamics have not significantly impacted ADA’s price over the last few months, as long-term interest rates have been the major driving force behind its price trends.
He expects the interest rates to continue dropping, which could send ADA surging with the broader crypto market despite its supply and demand. Whale activity in the Cardano ecosystem recently sparked optimism of a move to $0.7, hinting that Turner’s expectation of $1 is not outrageous.
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