Cardano price has dropped by 20% over the past week, reflecting bearish trends amid Bitcoin trading below $94,000. Analysts suggest ADA’s current price patterns mirror those seen in 2020, sparking speculation of a potential $6 price target. This market correction highlights broader cryptocurrency volatility, leaving investors cautious about future movements as Cardano adjusts to ongoing shifts in sentiment and market conditions.

Cardano Price Rally Echoes 2020 Cycle, Is $6 Next?

Cardano price appears to mirror its previous market cycles, sparking speculation about a potential price rally to $6. Analysts have observed similarities between the current correction phase and the 2020 market cycle, where ADA dropped 33.85% before surging 4,095.73%. In the current cycle, $ADA has already retraced 42.65%, echoing the past pattern and signaling the possibility of another upward move.

Historical data highlights critical levels that could guide $ADA’s trajectory. The price currently hovers near $0.91 after breaking out from a consolidation zone of $0.30-$0.45. If the bullish momentum continues, ADA could reclaim its previous high of $3.10 before testing the projected $6 target. However, market conditions and investor sentiment remain crucial factors influencing whether these levels will hold or break.

Source- Tweet

Over the past week, the Cardano price has seen a decrease of 20%, reflecting broader trends in the cryptocurrency market. As of December 23,  the ADA price is trading at $0.8893, slightly down by 0.24% in the last 24 hours. The token’s 24-hour low was recorded at $0.8631, with a high of $0.9127.

The cryptocurrency market continues to face pressure, with Bitcoin falling from $108K to $93K over three days. Ethereum, XRP, and Solana also record losses, reflecting a bearish trend. 

Will ADA Price Rebound To $1 This Week?

If the bearish sentiment persists, the ADA price could face a significant decline. A break below the $0.85 support level might push Cardano toward $0.70, intensifying concerns among traders about further downside in the bearish market.

However, if the market gains momentum, the Cardano price prediction could shift positively. A sustained recovery above the $1 mark might reignite bullish sentiment, setting the stage for a potential push toward $1.5. This level remains a critical psychological resistance that could signal a broader recovery for the cryptocurrency. The Relative Strength Index (RSI) stands near 46, indicating neutral market conditions. 

Source: Tweet

Cardano’s price trajectory remains uncertain as it mirrors historical patterns. Market momentum and sentiment will play pivotal roles in determining whether ADA can achieve its ambitious $6 target.

The post Cardano Price Patterns Mirror 2020, Is $6 Target in Sight? appeared first on CoinGape.

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Filed under: News - @ December 23, 2024 8:26 pm