Cardano (ADA), the 8th largest cryptocurrency by market cap, known for its meticulous development and research-driven approach, has entered a consolidation phase.
Although this sideways price action might seem unimpressive, for eagle-eyed analysts like Ali @ali_charts, it shows exciting possibilities. The current pattern bears an uncanny resemblance to Cardano’s behavior in late 2020, just before a significant upswing.
Read Also: Cardano 2024 Price Outlook: Experts’ Bullish Predictions For ADA
If history repeats itself, Ali believes ADA could be gearing up for a big surge, potentially reaching $0.80 by April, followed by a brief correction and then, a meteoric climb toward $7.
#Cardano's current consolidation phase mirrors its late 2020 behavior. If history repeats itself, we might see $ADA resuming its upward trend around April. This pattern continuation could potentially lead to an upswing toward $0.80, a brief correction to $0.60, then $7! pic.twitter.com/RuRA2EDMNP
— Ali (@ali_charts) January 19, 2024
An Impending Cardano (ADA) Surge
In late 2020, Cardano (ADA) underwent a similar consolidation phase before embarking on a parabolic rally that saw it break past its previous all-time high.
The current chart formation exhibits strikingly similar characteristics, with Cardano (ADA) trading with lower highs and higher lows, finding its footing within a defined range. ADA is gradually squeezing out volatility, suggesting that underlying buying pressure is building, and Cardano (ADA) could soon break out into an upward surge.
There are several factors supporting this bullish outlook. One key indicator is the accumulation of Cardano (ADA) by large investors with significant buying power, also known as whales.
On-chain data reveals a steady increase in whale holdings, suggesting confidence in Cardano’s long-term prospects.
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Recent whale accumulation of 14 million ADA sparked optimism of a move to $0.7. Additionally, developments and advancements within the Cardano ecosystem could attract wider adoption and fuel further demand for ADA.
Read Also: If History Repeats, Analyst Sets Timeline For Cardano (ADA) To Resume Bull Run
However, we can’t ignore the crypto market’s volatility. The market is notoriously unpredictable, and past performance is not necessarily indicative of future results. Several external factors, such as the overall market sentiment and regulatory developments, could significantly impact the Cardano price trajectory.
At the time of press, ADA is trading at $0.5145, with a relatively 3% price upsurge in the last 24 hours. However, if it can reach Ali’s target of $7, that would represent a 1,272% surge. While $7 remains a bold target, even a more conservative upswing towards $0.80 would be a welcome sight for ADA holders.
So, keep your eyes on the charts, as the digital asset might take off soon. April could be a month to remember for this innovative blockchain platform. Adding to the good news for Cardano holders, an ETF might be in the works, and an expert believes that this move might be big for institutional investors.
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