Cardano (ADA) Is Poised to Enter a New Bullish Phase, Analyst Predicts a 2,257% Increase
- WBOYOriginal
- 2024-07-30 18:31:04448browse
ADA has continued to follow the direction of the broader market, recently trading within a range of $0.408 to $0.430. Amid the prevailing market uncertainty
Cardano (ADA) price appears to be gearing up for a breakout with some analysts predicting a 2,257% rally in sight. Here's a closer look at ADA's recent price action and the technical analysis suggesting a potential massive price increase.
Following the broader market trend, ADA has been trading within a range of $0.408 to $0.430 in recent days. Amid the prevailing market uncertainty, renowned Bitcoin analyst SpartaBTC recently presented an analysis on TradingView that predicts a substantial price increase for Cardano.
In his analysis, SpartaBTC highlights key historical price movements for ADA, specifically focusing on a significant accumulation phase that occurred from November 2018 to June 2020. During this period, ADA's price consolidated between $0.027 and $0.117, with an average accumulation price of around $0.0440.
This phase set the stage for a massive rally, with ADA breaking out of this accumulation zone in June 2020 and surging to $0.38 by January 2021, indicating a 763% increase from the average accumulation price.
After facing a brief consolidation, ADA continued its upward trajectory, reaching its all-time high of $3.1 in August 2021. This price increase marks a 6,744% rise from the average accumulation price. However, after hitting this peak, ADA's price plummeted by over 91%, dropping to a low of $0.23 in June 2023.
According to SpartaBTC's analysis, Cardano entered another accumulation phase, which began in October 2022 and lasted until November 2023, mirroring the previous accumulation phase from November 2018 to June 2020.
During this latest accumulation phase, ADA's price remained relatively stable, setting the stage for the next potential breakout. In March 2024, ADA attempted to rally, reaching $0.81 but faced a rejection at this level, leading to a correction.
However, another technical analyst also spotted the formation of a falling wedge pattern on a different time frame. This pattern indicates that the downtrend is losing momentum and often precedes a significant price increase.
Based on this falling wedge pattern, SpartaBTC has set an initial price target of $1.96, which would mark a 650% surge from the current levels. Among the price targets, the most ambitious is $9.5, which would result in a 2,257% increase from Cardano's current price of approximately $0.403.
In the short-term, ADA is looking to end a losing streak that began on July 28, with the token showing a 0.25% gain this morning.
In a separate daily chart analysis, SpartaBTC highlights the bullish prospects for ADA in the short-term, with a chart showing the falling wedge pattern. SpartaBTC identifies an immediate target of $0.8918, which represents a 97.66% increase from the July 18 resistance level at $0.4489.
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