One analyst explained how if the historical pattern followed by the ADA price is to be believed, Cardano appears poised to launch into a parabolic uptrend.
Cardano may be set to launch into an uptrend based on historical trends
In new mail On X Day, analyst Ali Martinez discussed the hints that history may contain regarding where the price of ADA will go next. First, here's a chart shared by the analyst showing the trend the cryptocurrency followed in 2019:
The pattern that the price of the asset followed a few years back | Source: @ali_charts on X
From the chart, it appears that the asset first consolidated within a parallel channel during this period. A “parallel channel” in technical analysis (TA) refers to an area bounded by two parallel trend lines.
The upper line of the pattern connects the highs in the price, while the lower line connects the lows. When consolidating within the channel, the price will likely find resistance at the upper end and support at the lower end.
A breakout of either of these lines could mean a continuation of the trend in that direction. As can be seen in the chart, ADA was able to break out of this previous parallel channel with an increase of 75%. The asset then followed this rise with a correction of approximately 56% before finally rising to a massive 4,095% bullish wave.
Interestingly, just like in 2019, Cardano was stuck inside a similar parallel channel in 2023. The chart below shows this latest pattern for the cryptocurrency.
Looks like the price of the asset recently broke out of its parallel channel | Source: @ali_charts on X
As shown in the chart, Cardano broke out of this last parallel channel a while ago, this time with a rally of about 72%. However, the asset recently lost this upward momentum, seeing a 50% decline. However, according to the analyst, this could actually pave the way for a new bullish wave.
History does not repeat itself, but it is often similar! If this is the case for Cardano, then we should prepare for what is coming, knowing that the recent price correction may be just one of the last buying opportunities that ADA will provide you.
It now remains to be seen whether or not ADA will repeat the pattern from the last upward wave. It's more about the long-term view, so where can assets go in the short term? This may be answered by a reference the analyst has shared in another X post.
The TD Sequential signal that the ADA price has formed recently | Source: @ali_charts on X
As Martinez explains:
The TD Sequential indicator, which timed the Cardano peak, is now giving a buy signal on the ADA daily chart. He expects a recovery of 1 to 4 daily candles that could put an end to the ADA corrective phase.
ADA price
At the time of writing, Cardano is trading at $0.464, down 3% over the past week.
The price of the coin seems to have observed a sharp plunge over the past month | Source: ADAUSD on TradingView
Featured image from Shutterstock.com, charts from TradingView.com
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