Here’s How Cardano’s 17% Weekly Correction Can Help ADA Hit $6 This Cycle: Analyst

TL:DR;

• Cardano’s native cryptocurrency, alongside the rest of the market, has slumped hard on a weekly basis, dropping to well below $1.
• However, history shows that similar corrections have been followed by massive gains for the asset, with predictions of up to $6.

ADA’s recent price performance could be analyzed from two main perspectives – short-term and long-term. When looking at the past ten days or so, the landscape is quite gloomy. Within this timeframe, the asset went from $1.2 to under $0.8. Although it has recovered some ground to $0.9 now, it is still 25% down since December 12.

The broader landscape, though, shows a different picture. ADA’s price stood in a tight range between $0.3 and $0.4 for weeks ahead of the US presidential elections and the subsequent promising words by IOG’s founder, Charles Hoskinson.

It exploded to a new multi-year peak of over $1.3 later on, and even now, with its correction to $0.9, it is still 160% up in less than two months.

The first scenario is more painful for now, but when analyzing larger cycles, such as the current bull one, the second plays a more important role. Consequently, crypto analyst Ali Martinez focused on the long-term perspective to determine that ADA’s most recent correction could actually be a blessing in disguise.

He noted that the token has followed an ‘eerily similar pattern’ to the previous cycle in 2020. Back then, the asset’s first major retracement after a substantial rally “happened at the very same time as the correction we are experiencing today.”

As such, he believes ADA could shoot past its 2021 ATH of $3.09 (according to CoinGecko) and hit a new peak of $6.

It’s worth noting that such a price tag would put ADA’s market capitalization at well above $200 billion, which would make the asset the third-largest, at least according to how the market looks today.