Cardano Price Mirrors Last Pre-Bull Market Runup — Is It Ready For 2,000% Surge?
Cardano is mimicking a pattern from its previous bull market run-up. Does that mean another surge is coming?
Key Takeaways
- ADA faces a 19.2% decline but is positioned for a breakout.
- Analyst predicts ADA could surge over 2000% to new highs.
- Current ADA patterns mirror successful past breakout cycle.
Cardano‘s native token, ADA, has experienced a 19.2% decline in value over the last month amidst a broader crypto market downturn. Yet, cryptocurrency analyst Ali Martinez suggests on X (previously Twitter) that ADA is positioned for a potential breakout, mirroring patterns from 2018 to 2021.
According to the analyst, ADA is on the path of achieving a 2000% surge if what happened in the past will repeat itself.
A Fractal Is Shown
Martinez reaffirms that Cardano is on track, consolidating in preparation for an upward movement.
In the chart he shared on March 16, he spotted a similarity with its price pattern after the market crash in March 2020. Namely, the cryptocurrency was traded in a sideways range until November 2020, when it finally made a breakout.
After it established support at the prior resistance of $0.10, we saw a surge of 3217%, which was its all-time high of over $3. Since the start of 2023, a similar pattern formed with the price of Cardano forming a horizontal range before a breakout above it occurred in December.
As in the case of its previous cycle, it retested its prior resistance of $0.40 for support, causing further upside movement. This is why Ali Martinez believes the repeating pattern will lead ADA to a new all-time high of $9.50, making a rise of over 2000%.
Could it Be Different This Time?
In our recent analysis, we have covered some of the fundamental aspects of Cardano and investors’ sentiment. ADA experienced a 30% downturn from its recent peak, and whales haven’t used this opportunity to buy the dip, the fact which was also shared by the same analyst, Ali Martinez.
So if whales aren’t buying the token at a better price, the question is, who can drive its price rise?
ADA Price Analysis
Cardano’s last significant surge began on October 19, climbing from $0.23 to nearly $0.70 by December 13 of the previous year. Following this peak, its value corrected to $0.45 by January 22, touching an earlier peak on April 14, 2023, which is a retest of prior resistance for the support we were referring to.
This correction marked the beginning of a bullish phase, pushing Cardano’s value to a new high of $0.81 on March 14. Yet, post-March 14, Cardano’s value dipped, falling beneath its previous upward support trend to $0.57 by April 5, a level revisited yesterday, April 10.
Currently, Cardano is testing the resistance at the 0.236 Fibonacci retracement level, where it had previously found support. A successful climb above this threshold could indicate a potential for a short-term bullish recovery. Conversely, a failure to break through could lead to a further drop, possibly down to the $0.40 level.
Cardano’s future trajectory now largely depends on its interaction with the ascending channel’s support. Present indicators lean towards a bearish trend as the more probable scenario. However, if the analysis shows a completed five-wave growth pattern since last October, ADA may be amid a significant correction.
Disclaimers
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.
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