Crypto analyst Ali Martinez anticipates that Cardano (ADA) will embark on a parabolic bull run, reaching $9.9 after experiencing a 50% correction. Cardano has not been immune to the recent market downturn and has seen a significant correction from its peak above $0.81 this year. On March 14, ADA reached a high of $0.8104, benefiting from Bitcoin’s uptrend from October to the first quarter of the year. However, Cardano has since dropped 43% from its high, falling below multiple support levels and currently trading at $0.46. Despite this decline, some analysts, including Ali Martinez, remain optimistic about Cardano’s potential for a major recovery.
Martinez analyzed Cardano’s price movements and drew parallels between its current behavior and historical trends. He noted that the 50% price drop in ADA over the past month resembles a pattern observed in 2019. During that time, ADA’s price consolidated within a parallel channel from September 2018 to July 2020, exhibiting range-bound movements between support and resistance lines. This consolidation marked the end of the bear market and signaled a return of bullish sentiments.
Following the consolidation phase, ADA experienced a breakout with a 75% surge, followed by a 56% correction. Such corrections are common after significant price increases and often set the stage for further gains. Interestingly, the 56% correction in August and September 2020 led to an impressive 4,095% rally for ADA.
In 2023, a similar pattern has emerged. Cardano once again consolidated within a parallel channel from September 2022 to November 2023. In December 2023, ADA broke out with a 72% surge, but it has since undergone a 50% price correction. According to Martinez, this correction could be a precursor to another significant bull run.
If Cardano follows its previous trajectory, the recent price correction could present an excellent opportunity for investors to buy ADA before a potential bull run. Martinez predicts a possible 2,489% increase from the cycle low of $0.409 to a new all-time high of $9.982.
Currently, ADA is struggling to maintain a level above the psychological threshold of $0.46, trading at $0.4644. Cardano faces strong resistance at the 20-day SMA ($0.4693), and a break above this level could push it above $0.50. On the other hand, the bulls must defend $0.4290 to prevent further declines.
Disclaimer: This article provides informational content and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.