Cardano Price Target: $7 on the Horizon?

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This month, the price of Cardano has remained relatively stable, while Bitcoin and Solana have soared to new record highs among their peers. However, there are several factors that could propel Cardano (ADA) beyond its previous all-time high and reach as high as $7. These factors include a promising Elliot Wave pattern, potential collaborations with Chainlink, and positive indicators from the MVRV (Maker’s Value Realized to Market Value) ratio.

Elliot Wave Formation Could support Cardano Price Upside

In simpler terms, well-known cryptocurrency expert “Big Mike” suggests that the future value of Cardano may continue to rise significantly. His estimate indicates potential prices of up to $7 in the short term, followed by a more ambitious target of $22 down the line. To arrive at this prediction, he examined trends over a three-day period and applied the Elliot Wave principle.

Mike posits that ADA is currently experiencing its third phase, a trend he anticipates will persist until it hits its peak value of around $3. Subsequently, during the fourth phase, ADA could drop to approximately $1.5 before eventually surging upwards to an estimated $7 in the long run.

The key point to remember about this forecast is that Elliot Wave patterns, particularly those on a weekly or three-day scale, require patience due to their lengthy nature. For instance, the initial wave, typically brief, commenced in May 2023 and concluded in April 2024.

Potential Partnership With Chainlink

An imminent motivator for the increase in Cardano’s price could be its forthcoming collaboration with Chainlink. Over the weekend, Charles Hoskinson expressed his excitement about potential collaborations that Cardano might secure this year.

Additionally, he noted that he’s set to meet with Chainlink, a prominent oracle service provider, this week. If successful, this partnership could be significant as Chainlink leads the pack in sectors such as DeFi and RWA.

Cardano Price Technical Analysis

As the current consolidation phase comes to an end, we can expect new developments regarding Cardano’s (ADA) price on a weekly basis. It started at around $0.280 last August and reached a high of $1.33.

After that, Cardano experienced a decline and tested a significant support level at $0.81, which was its highest peak since the initial bull market in 2024. This drop and subsequent test are encouraging indicators for the coin, suggesting it might continue to rise.

A bullish pennant shape has been created, identifiable by a prolonged uptrend followed by a contracting triangle pattern. This formation typically suggests that Cardano’s price could surge significantly, potentially reaching or even surpassing its previous peak of $3, which represents approximately double the current value.

As I, the researcher, observe the current trends in ADA’s market, it’s crucial to note that a bullish forecast could be invalidated if the coin experiences a significant drop below the vital support level at approximately $0.81. Such a decline might trigger further downward momentum, potentially leading the price to test the resistance at around $0.50.

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2025-01-20 16:34