With the price of ADA hovering around $0.50, analyst Ali Martinez took to X to discuss its price potential. Meanwhile, data from on-chain intelligence platform IntoTheBlock shows Cardano’s community’s dedication to holding the coin.
These insights offer valuable perspectives on Cardano’s market dynamics and the underlying fundamentals behind the token.
Martinez pointed out a descending triangle on Cardano’s daily trading chart, a concept that can initially seem daunting. This pattern, characterized by lower highs and a flat line of lows, typically signals a bearish market sentiment.
However, Martinez argued that, if Cardano manages a daily close above $0.53, it could break away from this bearish trend. After that, it could, potentially, initiate a bullish phase, with a possible 32% increase in price to $0.68. Essentially, climbing above the $0.53 mark could boost investor confidence and significantly elevate Cardano’s price.
On the investor behavior front, IntoTheBlock says that 23% of Cardano holders have maintained their investment for over five years. This highlights loyalty and belief in Cardano‘s future, underscoring the community’s long-term commitment.
Such a substantial base of long-term holders demonstrates confidence in Cardano‘s prospects. Not only that, but it also provides a layer of stability against market fluctuations.
Cardano first started climbing on October 19, bouncing off its support level at $0.23 and reaching a high near $0.70 by December 13. Following that, a pullback brought Cardano’s price down to the resistance level it had previously broken through, with its January 22 low of $0.45 aligning with the high from April 14, 2023.
This move suggests the rise from October 19 might have been the initial phase of a new bullish cycle, followed by the first correction of this bull market. While there has been a rebound, Cardano’s price could still fall slightly further.
The $0.40 price point stands out as a critical level yet to be tested. It represents an additional 18% drop from current prices, which would signify the end of this phase.
The January 22 rebound could be part of an ABC corrective pattern, with the next move pushing the price above $0.60. Surpassing the $0.60 mark could show the beginning of a new upward trend, diverting from a possible dip to the $0.40 area.
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.