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Is It Just Deja Vu or Is There Going to Be a Cardano $1 Explosion?
In the last several months, investors in Cardano (ADA), the tenth biggest cryptocurrency by market capitalization, have had a wild ride. The little gain in ADA's price after a sharp drop in March has experts split on the cryptocurrency's future course. Would 2024 be the breakout year for ADA if the pricing trend from the past repeated itself, or are there red flags that need to be addressed?
A Bullish Echo or a False Hope: Cardano Mimics 2020?
A similar chart pattern is holding on for dear life for hopeful investors. The price of ADA seems to be following the same pattern as in 2020, says prominent crypto analyst Milkybull. There was a big price spike before the "Adam and Eve" double bottom pattern. A break from this pattern may cause ADA to retest its all-time high this year, if past performance is any indication.
The use of historical comparisons, meanwhile, is not without its drawbacks. The bitcoin market is dynamic and ever-changing, therefore it would be foolish to depend just on historical patterns.
Flashing Green: Technical Indicators, However, Network Activity Delays
A number of popular technical indicators that attempt to predict how the market will react are showing positive enthusiasm towards Cardano. Both the RSI and the Chaikin Money Flow indicators are moving in an upward trend, which might indicate that prices are about to go higher.
At the same time, an important statistic shows something different. Over the last few days, Cardano's daily active addresses—a measure of the unique users engaging with the network—have decreased somewhat. A possible explanation for this worrying drop in network activity is that fewer people are interested in using the Cardano ecosystem.
The Future of Cardano: A Delicate Balance
For now, Cardano's future is cloudy. There is a possibility of a bull run if we look at past trends and positive technical indicators, but the waning activity on the network makes us wonder whether it will last.
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