Cardano (ADA) has been steadily climbing with the rest of the crypto market. Although meme coins have dominated headlines with Shiba Inu (SHIB) climbing almost 300%, ADA has exhibited a more gradual yet consistent growth pattern.
ADA’s seemingly slow climb has led some investors to question its rising pace compared to the overall market rally. However, Ali Martinez (@ali_charts), a prominent crypto analyst, believes a historical parallel suggests a significant price increase for the digital asset is imminent.
Read Also: If History Repeats, Top Analyst Says Cardano (ADA) Could Surge 2,348% to $6. Here’s the Timeline
Cardano is currently trading at $0.6871, and despite a notable 11% uptick in the last week, ADA remains far from its all-time high of $3.10. The asset has also dropped 2.46% over the past 24 hours, bolstering the confidence of ADA detractors and increasing uncertainty.
Ali, however, believes that ADA’s current performance aligns with its behavior during the preceding market cycle. In his recent analysis, he highlighted a specific chart pattern that preceded ADA’s explosive growth in 2021.
#Cardano seems to be mirroring its previous bullish cycle. If this pattern continues, we could witness a brief correction before $ADA goes parabolic toward $10! pic.twitter.com/6kDxDhxsEg
— Ali (@ali_charts) March 4, 2024
Cardano (ADA) Echoing Past Performance?
Ali’s chart reveals a period of consolidation between September 2018 and July 2020, which he interprets as an accumulation phase for ADA. Following this extended period, ADA broke out in July 2020, reaching a high of $0.149.
However, a minor correction ensued, bringing the price down to $0.10 by November 2020. It was after this correction that ADA embarked on a staggering 3,217% surge, culminating in its all-time high in early September 2021.
Interestingly, Ali’s analysis suggests a similar pattern unfolding for ADA in the current cycle. After the price collapsed from its all-time high, the digital asset entered a consolidation phase lasting from September 2022 to November 2023. This consolidation phase ended with a breakout in December 2023 as part of the broader market upswing.
The recent retest of $0.80 further strengthens the parallel between the two market cycles. Based on this historical comparison, the analyst anticipates a potential price correction for ADA in the near term, followed by a significant price increase.
Meanwhile, a prominent crypto founder recently revealed that ADA won’t stay under $1 for much longer, adding credence to Ali’s prediction.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Cardano (ADA) Poised for 1750% Massive Breakout To $6.5, Analyst Indicates Timeline
Ali’s Price Target
Ali establishes an ambitious target price of $10 for Cardano (ADA). His chart shows a potential 2,084% surge from its January 2024 low of $0.448. However, a potential roadblock exists in the form of its Relative Strength Index (RSI). This technical indicator currently sits at 68 on the weekly timeframe, approaching overbought territory.
On two previous occasions, ADA faced a correction when its weekly RSI climbed above 70. However, with the ecosystem’s rapid growth and bullish signals all around, ADA could beat the decline and reach Ali’s target.
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