Stock Analyst Expects a 3,000% Cardano Upsurge to $13+ if History Repeats
thecryptobasic.com 18 July 2024 16:13, UTC A well-respected stock and crypto analyst on TradingView believes Cardano could rise 3,000% above $13 if its history repeats.
The seasoned analyst behind the BasicTradingTV account has recently projected a staggering 3,000% increase for Cardano (ADA), potentially driving its price to over $13. He bases the optimistic projection in the historical patterns and technical setups observed in ADA’s market behavior.
Cardano’s price movements have exhibited notable cyclical patterns over the years. The analyst pointed out that ADA has undergone significant surges followed by steep corrections over the years.
ADA’s Historical Data
In an analysis of ADA’s monthly chart, the market watcher revealed that Cardano experienced a major surge to its first cycle high of $0.3885 in May 2018. However, a steep correction followed afterward, leading to a drop to a $0.0391 low in December 2018.
Cardano recovered from the correction over a six-month period and eventually collapsed again to the $0.03 level. The analyst confirmed that ADA formed a robust support at this $0.03 floor price. Cardano retested this support twice. Afterward, it then broke through a key resistance trendline, leading to an impressive 5,000% rally.
The next cycle saw another substantial peak, followed by a correction that brought the price down to approximately $0.25. After finding support again, ADA embarked on a 250% rally.
Cardano Targets $13+
The current market structure suggests a similar setup is forming. ADA has established horizontal support around $0.42, having broken previous resistance, which now acts as a support level.
The analyst believes if ADA follows this historical pattern, it could witness another significant rally. The potential for a 3,000% increase from its current levels would place ADA’s price at $13.53. While this projection is ambitious, it is based on the repetition of past market cycles, which have shown similar bullish breakouts and corrections.
Currently, the market conditions for Cardano appear favorable. As of the latest data, ADA changes hands at $0.4366. The daily chart indicates a recent bullish momentum, with Cardano up 26% since June 8.
Cardano in a Bullish Position
Market data confirms that ADA’s price has been moving within the boundaries of the Keltner Channel, a volatility-based envelope set. Cardano has recently touched the upper band of the channel, suggesting increased buying pressure.
The Bollinger Band Width (BBW) indicator, which measures the volatility of the asset, shows a recent expansion. This indicates that volatility is increasing, which often precedes significant price movements. The BBW value stands at 30.90, suggesting that the market is gearing up for potential high volatility in the near term.
If ADA continues to show strength and maintains its position above key support levels, the bullish case for a significant uptrend remains plausible. The recent price action alongside the historical patterns, supports the possibility of a major upward movement. However, such a rally is not a certainty.
