Renowned crypto analyst Ali Martinez has sparked excitement among Cardano (ADA) investors by drawing parallels between the current market behaviour and that of late 2020.

In a Tweet, Martinez hinted at a promising upturn for ADA, foreseeing an impressive surge to a substantial $7. And while optimism is in the air, the seasoned analyst, however, acknowledged the likelihood of hurdles in the journey, including a potential brief correction.

Notably, Martinez highlighted the current consolidation or accumulation phase in Cardano’s market chart, comparing it to its behaviour in late 2020. During that period, ADA demonstrated a similar pattern, starting at $0.096 in November 2020 and experiencing substantial growth of over 1,200% to reach $1.3 by March 2021.

Martinez predicted that if historical trends repeat, ADA could resume its upward trajectory around April. The forecasted pattern points towards an upswing to $0.80, followed by a potential correction to $0.60, before surging to an impressive $7. This would signify a 13-fold increase or approximately 1,300% growth from its current prices. However, Martinez cautioned that the projected $7 value may not materialize within the current year. 

Interestingly, the pundit has consistently emphasized this pattern to his expansive audience of over 41,000 followers on X since last November, showcasing his resolute conviction in the recurrence of historical trends.

To further support Martinez’s analysis, ADA’s position on the 100-day Exponential Moving Average (EMA), a crucial indicator for gauging midterm trends, has been crucial. Currently around the $0.55 mark, the 100-day EMA could be a solid support level for Cardano.

Maintaining this level is crucial for ADA’s next rally, as it historically acts as dynamic support in bull markets, attracting buyers during dips. 

The current market sentiment also places trust in Cardano’s fundamentals, backed by its active DeFi ecosystem and continuous development efforts, positioning it as a leader in blockchain innovation.

That said, despite Cardano’s earlier bullish trajectory, which saw a 200% surge from $0.24 in October 2023 to $0.66 in December 2023, the prevailing bearish trend in the overall crypto market has impacted ADA, leading to a decline of over 14.62 % in the past week.

At press time, ADA was trading at $0.55, reflecting a 3.49% drop in the last 24 hours, according to CoinMarketCap data.

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Filed under: Bitcoin - @ February 13, 2024 9:05 pm