Cardano’s (ADA) Price to Jump By 1797% But Not Now: When?

In a post dated February 3, crypto analyst Ali Martinez noted that Cardano (ADA) might keep consolidating for the main time. However, Martinez mentioned that this consolidation might continue till April 2024, after that, ADA’s rally would begin.

The analyst gave the reason for his prediction, saying that ADA’s price action was similar to what happened in late 2020.

A Repeat Is An Option

For most of 2020, ADA moved between $0.022 and $0.050. But around November of the same year, the price broke out, leading ADA to hit $3 in August 2021. From the chart Martinez shared, he drew trendlines showing that the token might move between $0.30 and $0.51 between this period and April 2024.

But his chart also showed that ADA’s price might reach $7.91 by January 2025. If this happens, it would mean that ADA’s price has increased by a whopping 1797.67%. Since January 16, the 4-hour ADA/USD chart showed that the price has been moved sideways.

When highly bullish, ADA hits $0.53. A slight drawdown leads ADA to the $0.50 support. Then, in a highly bearish situation, ADA drops to $0.45. Should this consolidation phase continue, there is a chance for ADA to slide more than its 18.98% Year-To-Date (YTD) performance.

ADA to Trade At Discount Prices Soon

Cardano’s failure to move upwards could be linked to caution being applied in the market. Also, liquidity has been rotating from altcoins which has suppressed the prices of many. In terms of the key levels to watch, ADA might drop to $0.41 in the short term.

But that would depend on Bitcoin (BTC). If BTC does not rise past the $42,000 region, then prices of altcoins like ADA might experience a further dip. Should ADA drop this low, it could be an opportunity for traders to buy at a lower price.

A recovery from $0.41 to $0.65 would constitute a 36.92% gain. Indications from the Relative Strength Index (RSI) also showed that buyers were absent. With this in place, the RSI reading might drop as low as 35.00 which might pull ADA’s price down.

In addition, the Awesome Oscillator (AO) was 0.002. But with red bars on display, it means that the token risked another downturn. For the foreseeable future, ADA’s price might rally. However, the short-term outlook for the cryptocurrency looks gloomy.