2024-2-21 22:00 |
In their usual fashion, market analysts are making bold price predictions for crypto assets, especially altcoins, at this time. Cardano (ADA) is one such asset poised to make an upward price correction in the long term.
The analyst, Ali Martinez, a prominent market observer and crypto investor, has outlined his observations and expectations for the 8th most-valued digital currency by market cap.
In a recent post shared with X, the analyst highlighted a chart pattern that seemed to be a repeat of a pattern spotted in 2020, when the pandemic triggered a crypto market crash that caused ADA to experience a noticeable price dip.
If ADA imitates this pattern entirely, the asset could remain in a consolidation phase for the next four months, says the analyst.
“Should the patterns align and Cardano mirrors its late 2020 price behaviour, we can anticipate ADA to remain in a consolidation phase until April 2024, setting the stage for its next bull rally!” — Ali Martinez.
Notably, consolidation happens when a cryptocurrency stagnates and trades between two levels. At this point, the market tends to suggest indecisiveness on where the asset is headed in the long term. When the asset eventually breaks upwards or downwards, it puts an end to the consolidation phase and introduces the beginning of a new trend.
ADA can sustain a bullish momentum if the patterns from 2020 are perfectly consistent with its current pattern and could result in ADA tapping $8 for the first time this year, the analyst added.
For context, ADA is positioned on its way to reclaiming previous support levels over the $0.65 price point as well. Although the asset has had a rather slow recovery over the past month, ADA bulls have remained active. Meanwhile, at press time, ADA is trading for $0.6. Bulls have a long way to go as weekly, daily, hourly, and monthly losses continue to pile up.
Meanwhile, on-chain data sheds light on market sentiments amongst investors and traders. According to on-chain metrics, crypto market caps lack the usual growth traders have been accustomed to since the bull cycle kicked off in October.
This has stirred up a bearish sentiment that has spearheaded crypto discourse this week. Cardano (ADA) and five other assets are all uniformly in a more negative crowd sentiment range than historical averages.
As Santiment further explains,
“This is the first time in over 6 months that this has occurred. When traders become concerned and show FUD across multiple large assets, it is a signal that market caps have a higher likelihood of seeing an impending bounce. Markets historically move in the direction of the crowd’s least expected direction, making a rise catch many short traders off guard.”
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