Cardano (ADA) may be on its way Through lackluster price action For now, but analyst Ali Martinez believes cryptocurrencies may be poised for a parabolic trajectory. Taking to social media platform X, Martinez talked about complex price analysis that ADA investors might find attractive.
In particular, the analyst noted that the current price formation of the cryptocurrency appears return signs, According to its price history.
Cardano price history is showing signs of a comeback
Cardano price was On the road to correction Since mid-March when it peaked at $0.79. Interestingly, current price levels mean that the cryptocurrency has corrected over 40% from this peak.
This has led to some investors being concerned about the trajectory of ADA prices for the rest of the years, especially given the various inactivity and other concerns surrounding the cryptocurrency. However, according to Martinez, this cycle is normal for cryptocurrency.
The famous analyst's opinion about ADA is based on its historical trend. According to the 1 million ADA/USD time frame chart shared by Martinez, the 50% ADA price drop recorded last month could be a golden opportunity for cryptocurrency investors to position themselves against rising prices.
Looking at the history of ADA prices shows that this may just be a temporary setback before the next rally. Similar price action occurred between 2019 and 2020 before rising to all-time highs in 2021.
Total crypto market cap currently at $2.29 trillion. Chart: TradingView
After exiting the consolidating channel in 2020, ADA gained 75% and then corrected 56% over three months. This correction was quickly forgotten as ADA rebounded and continued an impressive 4,095% climb to reach an all-time high of $3.09.
As Martinez pointed out, a similar price action appears to be occurring. ADA recently exited a consolidation channel that has been running for almost all of 2023. This break above the channel sent ADA up 72% before its recent correction.
If history repeats itself, ADA could begin a parabolic rally in May and rise to new highs in the coming months. Martinez predicted prices would rise 2,480% to $9.98 over the next nine months.
History does not repeat itself, but it is often similar!
If this is the case for #CardanoWe must prepare for what is coming, knowing that the recent price correction may just be one of the last opportunities to buy the dip $ada I will give you. pic.twitter.com/wlKs7fNhb8
– Ali (@ali_charts) May 3, 2024
What to expect in Cardano's next bull run
It is important to note that the cryptocurrency market has developed significantly since 2021 and crypto assets have become less volatile, especially during bullish trends. Many things should It is being positioned until the $9 ADA price becomes a reality.
For example, there should be Wider flow and the mainstream adoption of cryptocurrencies. According to the cryptocurrency prediction site Telegaon, Cardano could reach the $9 price level by the end of the decade.
Martinez believes the recent price correction may actually be one of the last buy-low opportunities for investors to acquire ADA. At the time of writing, ADA is trading at $0.4638 and is down 1% over the past 24 hours.
Featured image from Pexels, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on buying, selling or holding any investments and investing naturally carries risks. We advise you to conduct your own research before making any investment decisions. Use the information provided on this website entirely at your own risk.
