According to crypto analyst Ali Martinez, Cardano (ADA) exhibits a very bullish price consolidation pattern. Drawing parallels with the consolidation phase of 2018-2020, Martinez points out that ADA’s current trend is a mirror image, albeit without the disastrous COVID-19 crash.
“Cardano’s current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash! If so, ADA could break through the $0.45 resistance around the first week of December. The recovery could push ADA to $0.75 by the end of December,” Martinez shared in a recent statement. job on X.
The one-week chart for ADA/USD indicates a prolonged consolidation phase spanning 665 days until July 2020, after which ADA saw a 2,984% rally, peaking at $3.058. An important aspect of this ascent was the retest of the upper line of the consolidation zone, which took several months between summer 2020 and early 2021. Interestingly, after returning to the consolidation zone, ADA initiated a second breakout that led to a massive bull run.
Cardano ready for 650% rally through July?
Martinez’s analysis suggests that ADA may be about to break out for the first time from its current consolidation range of less than $0.25 to $0.45, which has lasted for 434 days. He outlines two possible trajectories for ADA price over the coming timeframe, using a gray line and a blue line in his chart.
The most bullish scenario (gray line) predicts a breakout above the consolidation zone that could catapult ADA to $0.75 by the end of December, assuming it moves past the crucial resistance at 0, $45. Following the historical model, a new test of the breakout could take place over several months.
This could potentially set the stage for an explosive rally beginning in early summer 2024, leading ADA to surge approximately 650% from its current value and surpass the $3 mark. However, Martinez doesn’t see this as the peak of ADA’s growth potential. The gray line suggests continued upward movement, with ADA possibly reaching $6.50 before the 2024 close.
The second, more conservative scenario (blue line) posits that Cardano’s price consolidation could extend through July 2024, with potential drops below $0.25 if a COVID-19-like market crash occurs. occurs. In this case, a breakout towards $0.75 would be expected around July, followed by a retest at $0.45 by the end of 2024, ultimately propelling ADA towards the $3 threshold by mid- 2025.
Short-term price analysis
On lower deadlines, ADA is currently taking strong measures. The price successfully retested the 0.5 Fibonacci retracement level ($0.341) and climbed above the 0.618 Fibonacci retracement level ($0.37). In the first attempt, ADA failed at the 0.786 Fibonacci retracement level ($0.0.411). However, if this resistance is broken, the door to the yearly high of $0.463 is clearly open.
Featured image from iStock, chart from TradingView.com