- Cryptocurrency analysts predict a surge for Cardano (ADA) despite its recent decline, citing similarities in past price patterns that suggest a potential 2000% increase.
- Trend Riders confirm bullish momentum, pointing to RSI and SMA indicators signaling a potential trend shift, which could lead ADA into a parabolic zone.
Cryptocurrency analysts forecast a potential surge for Cardano (ADA) amidst a broader market downturn. Analyst Ali Martinez points out a striking similarity between ADA’s current price pattern and its behavior from 2018 to 2021. Martinez highlights a fractal pattern in ADA’s price movement, indicating a potential surge of up to 2000% if historical trends repeat themselves. According to Martinez, ADA is consolidating and preparing for an upward movement, drawing parallels with its previous cycle.
Nothing has really changed for #Cardano. $ADA is exactly where it should be, consolidating in the $0.55 to $0.80 range before a breakout to $1.70! https://t.co/414rFQhxLf pic.twitter.com/Djx9YqOp7F
— Ali (@ali_charts) April 9, 2024
Data from previous market cycles support Martinez’s analysis. In March 2020, ADA traded sideways before breaking out in November of the same year, resulting in a surge of over 3000%. Similarly, ADA formed a horizontal range in early 2023 before breaking out in December, mirroring its previous behavior. Martinez believes that ADA’s current consolidation phase will lead to a breakout above its prior resistance levels, potentially propelling its price to new all-time highs.
Trend Riders Confirm Bullish Momentum
Further bolstering the bullish sentiment surrounding ADA, Trend Riders, another group of prominent crypto analysts, have weighed in with their analysis. They emphasize ADA’s current price momentum, pointing to indicators such as the Relative Strength Index (RSI) and Simple Moving Average (SMA) crossover as positive signals for future price action.
C. The Second Crossover
It happened during October and November 2023.
However notice how there was a rejection a few months before, this event gives even more validation to this indicator. pic.twitter.com/qBUcGYsxq0
— Trend Rider (@TrendRidersTR) April 11, 2024
The analysts note that ADA’s second RSI crossover in history is reminiscent of previous price surges, particularly when ADA soared from $0.05 to $3. This rare event, signaling a potential trend shift, has historically preceded significant price movements for ADA.
The RSI and SMA indicators, which measure the momentum of price movements, further support the optimistic outlook for ADA. Trend Riders elaborate on how the crossover between these indicators at key levels has historically foreshadowed bullish phases for ADA’s price.
Referencing previous instances of RSI and SMA crossovers, Trend Riders highlight the potential for ADA to enter a parabolic zone, projecting a notable price peak in the near future. The timing of these indicators aligns with ADA’s current gradual bull phase, presenting an opportune moment for traders to consider long-term positions.
On-Chain Metrics Signal Bearish Sentiment
Recent on-chain metrics for Cardano (ADA) indicate a bearish sentiment within the market. IntoTheBlock reports a marginal increase of 0.17% in ‘Net Network Growth’ over the past week, suggesting a potential waning of user adoption as new addresses fail to offset the departure of existing ones. Additionally, the volume of large transactions on the Cardano network has experienced a decline of 2.60%, indicating a possible retreat by significant investors, commonly referred to as ‘whales.’ These metrics collectively contribute to the negative market sentiment surrounding ADA.
Cardano’s market capitalization currently stands at $18 billion, reflecting a significant decrease compared to its peak performance. Despite a surge of 249% in trading volume over the past 24 hours, ADA has faced a notable decline of 13% in the past day and a massive drop of 34% over the past month.
