Why This Analyst Thinks Cardano Price Rally to $3 is Inevitable

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As a seasoned researcher with a penchant for deciphering cryptocurrency trends, I find myself intrigued by the bullish outlook for Cardano (ADA). With my extensive background in technical analysis and market dynamics, I’ve seen my fair share of price movements, and this one certainly catches my attention.

During U.S. trading hours on Tuesday, the price of Cardano climbed by 0.8%, peaking at a trading value of approximately $0.36 and a total market capitalization of around $12.7 billion. This growth coincides with the broader market’s rebound; however, a crypto expert predicts that the price rally for ADA could reach as high as $3.

Why Analyst Thinks Cardano Price Rally is Inevitable

In a recent tweet, crypto expert Trendrider expressed optimism about Cardano’s price based on a recent shift in the Chaikin Money Flow (CMF) Indicator. Although he acknowledged that ADA has been in a prolonged consolidation phase, he pointed out to his 20.4K followers that the price managed to prevent a new low from forming in the weekly chart.

Following on, the Chaikin Money Flow (CMF) indicator shows an increase in its formation, implying stronger buying demand and a possible shift towards a bullish trend in the market momentum. This indicator calculates the weighted average of accumulation and distribution over a specific timeframe to aid in detecting buying or selling pressure within the market.

Data collected towards the end of 2020 indicates that when this particular indicator shifted into a positive zone, it served as an early warning for the subsequent upward trend which reached its peak at $3.1, a new all-time high.

Cardano Founder Thinks ADA Can Flip Bitcoin (BTC)

At the Cardano Summit 2024 held in Buenos Aires, I (as a researcher) had the privilege to listen to Charles Hoskinson’s vision for our network. He emphasized the incredible journey that started with nothing and has now grown into an ecosystem valued in the billions, serving millions of users worldwide. Moreover, he underlined Cardano’s significant role as one of the leading blockchain research communities.

As an analyst, I find myself intrigued by Hoskinson’s forecast for the next decade, suggesting that Cardano could potentially outshine both pioneering cryptocurrencies, Bitcoin and Ethereum, in terms of global impact. He emphasizes that due to its robust reliability and security, major governments might eventually incorporate Cardano’s infrastructure for their critical systems.

Hoskinson’s long-term goal emphasizes the team’s dedication to establish Cardano as a key foundation for the advancement of blockchain technology.

ADA Price Analysis Hints a Major Breakout From Multi-month Consolidation

For the last 3 months, the price of Cardano has moved horizontally inside a symmetric triangle structure on its daily chart. This triangle is formed by two converging trendlines, and the asset is currently trading at around $0.36 as a result.

As a researcher analyzing the trends, if this pattern maintains its suitable upward trajectory, I anticipate that the ADA price might swell by approximately 7.8%, potentially breaching the significant resistance line. Should an uptrend breakout occur, it would amplify the bullish energy and propel the asset for a potential initial surge of around 48% to reach the $0.57 mark.

Instead, if the price falls below the lower trendline of the pattern, it contradicts the bullish theory and suggests a continuation of a downtrend rather than a prolonged correction.

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2024-10-22 19:24