Cardano (ADA) is down 85.5% from its ATH of $3.10.
Analysts predict a price correction for ADA if patterns from 2019 repeat.
Cardano (ADA), the tenth-largest cryptocurrency by market cap, continues to trade in the bearish zone — down by 22% over the past 30 days.
ADA/USDT 4H Price Chart (Source: TradingView)
On the 4-hour chart, the RSI (relative strength index) hovers close to the neutral zone, indicated by its reading of 55.4. Meanwhile, the MACD (moving average convergence/divergence) has formed a positive histogram as the 12-day moving average (MA) crossed above the 26-day MA. This suggests that a possible short-term momentum may be shifting in favor of traders.
According to CoinMarketCap data, the current price of ADA was $0.4574 with a short uptick of 0.21% over the past 24 hours. A circulating supply of 36.84 billion ADA holds together a cap of $16.3 billion in the market.
Bullish Forecast for Cardano (ADA) Has Surfaced?
Amidst this intense bearish period, a contradictory prediction emerges regarding Cardano. The most-followed crypto analyst, known as Ali Charts, highlights in his recent post the possibility of a parabolic bull run for ADA. He draws attention to the pattern exhibited by ADA during the 2019 market. During that phase, ADA went through three sub-segments — a brief surge after a consolidation phase, price correction, and skyrocketing rally followed by a bull run.
In 2019, #Cardano consolidated within a parallel channel, signaling an end to the bear market.Following the stagnant phase, $ADA broke out of the channel with a 75% surge, then underwent a 56% price correction, setting the stage for an impressive 4,095% bull run. pic.twitter.com/5C3GIHEvGp
— Ali (@ali_charts) May 3, 2024
In addition to this, he also highlighted a similar pattern observed in 2023. According to his analysis, Cardano has recently undergone a price correction phase and is now presenting investors with ‘buy the dip’ opportunities. If ADA mimics the pattern, there might be changes for the altcoin to onboard an uptrend, as forecasted by Ali.
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