Cardano (ADA) Price Can Surge Above $1 If This Historical Pattern Repeats
The post Cardano (ADA) Price Can Surge Above $1 If This Historical Pattern Repeats appeared first on Coinpedia Fintech News
Cardano (ADA), a top-rated smart contract blockchain with more than $335 million in Total Value Locked (TVL), has attracted notable attention from cryptocurrency investors in the recent past. The Cardano ecosystem boasts deep liquidity with ADA and its supported web3 tokens listed on major crypto exchanges like Binance Holdings and Coinbase Global.
Furthermore, ADA has a volume-to-market cap ratio of about 2.37, indicating an improving liquidity as the figure has risen in the past few months.
ADA Price Analysis
#Cardano‘s current consolidation phase mirrors its late 2020 behavior. If history repeats itself, we might see $ADA resuming its upward trend around April. This pattern continuation could potentially lead to an upswing toward $0.80, a brief correction to $0.60, then $7! pic.twitter.com/RuRA2EDMNP
— Ali (@ali_charts) January 19, 2024
According to a popular crypto analyst, Ali Martinez, Cardano’s (ADA) price has been gradually mirroring the 2020 price action. As a result, the crypto analyst expects the ADA price to reach 80 cents in the near term and ultimately rally toward $7 during this bull cycle.
From a technical standpoint, the ADA price faced a significant resistance level of around 67 cents, coinciding with the 200 weekly Moving Average (MA). Meanwhile, the ADA price is on the cusp of falling back towards the support/resistance range between 40 cents and 45 cents if the bulls fail to defend the support level, which is around 47cents. Already, the weekly Relative Strength Index (RSI) has fallen below the 70 level, which strengthens the bears in the near term.
Cardano Demonstrates Market Resilience
Despite being a scalable Ethereum killer that uses a proof-of-stake consensus mechanism, Cardano’s core development team, led by Charles Hoskinson from Input Output Global, has been working on secure and high throughput layer two solutions like the Hydra project. Moreover, the Cardano network is home to dozens of decentralized financial (DeFi) platforms like Indigo CDP, Minswap DEX, and Liquid lending, among many others.
Filed under: Bitcoin - @ January 19, 2024 10:22 am