Cardano ($ADA ), the ninth largest cryptocurrency by market cap, has recently caught the attention of traders and analysts alike. According to Ali (@ali_charts), a crypto analyst, Cardano is following a historical pattern eerily similar to its previous cycle. Could this pattern indicate a major breakout? Let’s dive into the technical analysis, key price levels, and the potential bullish future for Cardano.
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Current Market Overview 📊
Last Price: $0.8825 (-4%)
Weekly Performance: Down 19%
Market Condition: After a four-day decline, ADA rebounded from a low of $0.762 on Friday.
Sell-Off Impact: $246 million in crypto liquidations during Sunday’s sell-off, leading to short-term instability.
Key Levels to Watch 📍
Support:
$0.869 (Daily SMA 50)
$0.76 (First key support)
$0.69 (Next level if $0.76 fails)
$0.50 (Major support zone if the downtrend continues)
Resistance:
$1.00 (Key resistance, bulls need to break this for further upside)
$1.10–$1.20 (Next major resistance range)
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Historical Pattern: Will $6 Be Possible? 📈
2020 vs. 2024: The Similarity 🧐
In 2020, after Cardano’s first major bull rally correction, the price consolidated for a while before a significant price surge.
Today, ADA is following a similar pattern, with a major correction in the market as seen previously.
Ali's Prediction: If this historical pattern repeats, ADA could target as high as $6 by 2025, which aligns with its prior market movements post-correction.
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Recent Price Action & Market Sentiment 🐂🐻
Cardano's price has been fluctuating, but the bulls are actively defending key levels. Here's what we know:
1. Bulls’ Fight at $0.869 Support:
ADA is testing key support near $0.869 (daily SMA 50). Failure to hold here could result in further price declines toward $0.76, $0.69, or $0.50.
Immediate Resistance: Reclaiming the $1.00 mark is essential for a bullish continuation, pushing ADA towards higher targets.
2. Potential Rebound or Further Decline:
If the price rebounds from $0.869 and breaks $1.00, we could see ADA head toward $1.10–$1.20.
However, if $0.869 support fails, **$ADA could see a retest of $0.76 or $0.69, where more support could be found.
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Cardano Plomin Hard Fork: A Catalyst for Future Growth ⚙️
In addition to market movements, Cardano's technical upgrades are also contributing to long-term growth.
1. Plomin Hard Fork and Full On-Chain Governance
The Plomin hard fork will unlock full on-chain governance for Cardano, enabling the implementation of CIP-1694, which will establish a decentralized governance model.
The expected activation window for the hard fork is between January 4 and 29, 2025, marking a significant milestone for Cardano’s ecosystem.
2. Potential Impact on ADA Price
Successful implementation of full governance could lead to positive sentiment and increased network adoption, which could act as a bullish catalyst for the ADA price.
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Trading Strategy and Analysis 📊
Bullish Scenario:
1. Entry Zone: Buy near $0.869 (if the support holds).
2. Target Levels:
T1: $1.00
T2: $1.10
T3: $1.20
T4: $6.00 (long-term potential by 2025, based on historical pattern).
3. Stop Loss: $0.75 (below key support).
Bearish Scenario (If Support Fails):
1. Entry for Shorts: Consider shorting if price breaks below $0.869.
2. Target Levels:
T1: $0.76
T2: $0.69
T3: $0.50
3. Stop Loss: $1.00 (if price rallies unexpectedly).
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Final Thoughts 💡
Cardano ($ADA) is testing key support levels, and the historical pattern from 2020 suggests that a major price recovery could be on the horizon. With the upcoming Plomin hard fork and full governance activation, ADA’s long-term prospects remain strong.
Traders should watch key support at $0.869, as this will determine if ADA is ready for a breakout to $1.00 or if a deeper pullback is likely. The long-term target of $6 by 2025 could be achievable if the bullish pattern continues.
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