Cardano (ADA) is in a sensitive stage with potential signals for a significant recovery, but still faces major challenges both technically and fundamentally. Below are the key expectations from analysts and the market:
1. Price recovery potential
• Analyst Ali Martinez emphasizes the possibility that ADA could reach $6 based on historical growth cycles. He predicts a similar scenario to 2020 could repeat, when ADA saw a strong price increase after corrections.
• If ADA surpasses the $1 resistance level, the next targets could include $1.2, $1.6, $1.8, and $2.4, paving the way for a strong upward trend.
2. Positive technical signals
• Although the market value has decreased, Martinez points out that the current correction could open up potential growth opportunities if historical trends repeat.
• A strong rally could be driven if transaction volume and buying demand increase in the near future.
3. Major challenges: On-chain activity and transaction volume
• Analysis from AMBCrypto shows that the ADA price is not supported by growth in on-chain activity.
• The increase in the current market value appears to be driven more by speculation than by the actual increased use of the network.
4. Long-term outlook
• While short-term resistance levels like $1 are the immediate target, the sustainability of the ADA price will depend on enhancing on-chain activity and real-world application within the Cardano ecosystem.
• If improvements such as smart contracts and DeFi on Cardano continue to develop, this could provide stronger fundamental support for the ADA price.
In summary, Cardano has the potential to recover from the current lows if market conditions improve, but long-term growth will depend on the combination of technical factors and fundamental activity in the ecosystem.