Crypto Analyst Says Cardano “Ready For A Parabolic Bull Run,” Here’s Why

One analyst explained that Cardano appears poised to embark on a parabolic bull market if we believe the historical pattern that ADA prices are following.

Cardano could be headed for a bull market based on past trends

new post At X, analyst Ali Martinez discussed what clues history contains about where ADA’s price will go next from here. First, here is a chart shared by an analyst showing the trends followed by cryptocurrencies in 2019.

The pattern that the price of the asset followed a few years back | Source: @ali_charts on X

From the graph, we can see that assets were integrated for the first time in parallel channels during this period. In technical analysis (TA), “parallel channels” refers to the area bounded by two parallel trend lines.

The upper line of the pattern connects the highest price points, and the lower line connects the lowest price points. If consolidating within the channel, the price may find resistance at the top and support at the bottom.

A breakout above either of these lines could mean a continuation of the trend in that direction. As seen on the chart, ADA was able to break out of this historical parallel channel with a 75% surge. The asset then followed this rally with a correction of around 56%, eventually entering a massive 4,095% bull run.

Interestingly, just like in 2019, Cardano was stuck within a similar parallel channel in 2023 as well. The chart below illustrates this recent pattern for the cryptocurrency.

Cardano 2023 pattern

Looks like the price of the asset recently broke out of its parallel channel | Source: @ali_charts on X

As shown in the graph, Cardano broke out of this latest parallel channel a while ago, this time with an increase of around 72%. But recently, the asset has lost this bullish momentum with a 50% drawdown. But analysts say this could actually be the start of a new bull market.

History doesn’t repeat itself, but it often rhymes. If that is the case with Cardano, we should understand that the recent price correction may be one of the last bull buying opportunities ADA presents and prepare for what is to come.

It remains to be seen whether ADA will repeat the pattern of the previous bull market. However, this is about the long-term view, so where will the assets go in the short term? This could be answered by the signal the analyst shared in another of her X posts.

Cardano TD Sequential

The TD Sequential signal that the ADA price has formed recently | Source: @ali_charts on X

Martinez explains:

TD Sequential, which timed the top of Cardano, is presenting a buy signal on the ADA daily chart. We expect a rebound of 1 to 4 candlesticks per day, potentially marking the end of the correction phase for ADA.

ada price

At the time of writing, Cardano is trading around $0.464, down 3% over the past week.

cardano price chart

The price of the coin seems to have observed a sharp plunge over the past month | Source: ADAUSD on TradingView

Featured image from Shutterstock.com, chart from TradingView.com

Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell, or hold an investment, and investing naturally involves risk. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.

Related Article

0 Comments

Leave a Comment