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The ADA price action of late indicates that of strong support over the $0.488 price level, as the crypto continues to perform lackluster in the past month. However, according to crypto analyst Ali Martinez, Cardano’s current price performance is somewhat of a repeat of previous price action.
The analyst noted that Cardano’s price movement looks a lot like late 2020 before ADA went on a massive bull run. If history repeats itself, Cardano could be poised for another major rally that sends the price to $8.
ADA Price Chart Shows Similarities To Previous Consolidation
Cryptocurrencies are known to repeat previous price actions, giving analysts an idea of what to expect based on the outcome of the previous performance. Given this, a Cardano technical analysis shared on social media platform X by Ali Martinez looked at the crypto’s past performance.
To be more precise, the analyst noted that the current consolidation is a precursor for the bull rally that might come next. If the analysis turns out to hold, Martinez noted that ADA could consolidate until April 2024.
Should the patterns align and #Cardano mirrors its late 2020 price behavior, we can anticipate $ADA to remain in a consolidation phase until April 2024, setting the stage for its next bull rally! pic.twitter.com/xEKu1LQRRo
— Ali (@ali_charts) February 3, 2024
The last time this type of consolidation occurred, ADA would eventually break out and go on a 3,217% price surge over the next 287 days. A repeat of this phenomenon after the consolidation ends would see ADA surging close to an $8 price target in January 2025. This would represent a gain of over 1,760% from the current price level.
Current State Of Cardano
ADA’s price action points to the creation of lower highs since it reached a 2023 peak of $0.6655 on December 14, 2023. Particularly, the crypto recently got rejected around the $0.5241 price level, indicating the lack of strong buying momentum from the bulls.
On-chain data from IntoTheBlock shows that 45% of ADA addresses are currently making a profit, with the recent analysis pointing to this metric remaining the same at least until April. However, there is no guarantee ADA will follow Martinez’s predicted pattern or hit his $8 target as the crypto market is notoriously volatile and difficult to predict.
On the activity end of things, Cardano processed over 4 million transactions in December and January. There has also been a 67% growth in the implementation of smart contracts on the Cardano (ADA) network, according to recent reports.
Charles Hoskinson, the founder of Cardano, asserted that the Cardano blockchain is significantly more advanced than Bitcoin in terms of development, layer-2 networks, and flexibility to accommodate developers on the blockchain.
Although Cardano is up by 2.62% in the past seven days, a larger 30-day timeframe shows the crypto down by 9.37%.
Featured image from CoinMarketCap, chart from Tradingview.com
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