Cardano to Reach $0.80 by April 2024? ADA Mirrors 2020 Behavior
As ADA slides down, can it make an upturn soon, and reach $0.80 by April?
Key Takeaways
- ADA has slid by 30%, but an upturn could soon occur.
- A prominent analyst points out the similarity in price patterns to late 2020.
- Chart analysis indicates another low of $0.40 could be made before a new uptrend starts.
Cardano’s price made a significant breakout above $0.40, its long-lasting horizontal zone on December 5, reaching $0.70, its highest point since June 2022. This made the community bullish, but the price has since fallen back to $0.50, around which it is currently being traded.
Some prominent analysts have taken to X to discuss what this means. One such is Ali, who points out the similarity between late 2020 price behavior when a similar horizontal range was broken, resulting in a multi-year bull cycle.
Can ADA continue its upward trajectory and reach a new all-time high of $7?
ADA Price Analysis
Looking at Cardano’s 4-hour chart, we can see that the uptrend from October 19 ended. This was the first five-wave impulse in a starting bull phase as it made a significant breakout above its mentioned horizontal zone.
As it did, we saw a decline of 31%, measured to its January 8 low of $0.46, but was this the end of its corrective stage? The price came down to 0.5 Fibonacci level, but there wasn’t a proper interaction.
It did so in one go, and considering that these corrections usually come in a three-wave manner, there is still some room to the downside. The 4-hour chart RSI signals a potential local bottom, so in the short term, we might see a recovery, but the price action isn’t showing bullishness.
We will likely see a minor recovery, which would be approximately the completion of the B wave from the ABC correction to the $0.57 area. Measuring with the Fibonacci retracement tool, at its optimal point of 0.618, we develop the overlapping with the horizontal zone’s resistance.
This is the most likely target for completing this correction, as the $0.40 area was broken and could now be retested for support before further upside movements.
ADA Price Prediction
Zooming onto the daily chart, we see that the next significant zone in line with the upside is $1.14. It overlaps with the 1.618 Fibonacci extension level, a typical target for wave 3. Considering the significance behind the level and that it previously served as support, this would be our likely target for the next run-up.
But if this is the more significant uptrend, the price ADA could continue moving for another higher high as wave 5 develops. Our target for completing this uptrend from October 19 would be $1.61.
The price of ADA has the potential to reach $0.80 by April and surpass it later on. Would that mean that it has the potential to make a new all-time high of $7? Only time will tell, but if this plays out, the likelihood of it achieving a new all-time would be very high.
Disclaimer
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.
