Cardano (ADA) has encountered resistance in recent weeks, as its price dipped alongside a broader cryptocurrency market correction. However, analyst Ali Matinez (@ali_charts) remains bullish on ADA’s long-term prospects, reiterating his forecast of a potential surge to $1.7.
ADA has experienced a decline from a monthly high of $0.8011. This drop reflects a cautious market sentiment impacting the entire cryptocurrency industry. Despite the short-term price weakness, Ali believes this consolidation phase aligns with his previous analysis for ADA.
In a recent update, Ali emphasized that his long-term bullish outlook for Cardano remains unchanged. He had previously predicted ADA to consolidate between $0.55 and $0.80, a range the asset has indeed adhered to over the past month. However, ADA recently dipped with the rest of the market, and the digital asset is trading at $0.4992.
However, this could be a short-term setback, and if ADA recovers, it could continue its consolidation as it heads for a massive breakout. Ali expects a breakout from this consolidation zone to trigger significant upside potential for ADA. His short-term target suggests a price point of $1.70.
The $9.5 Target
Underpinning Ali’s optimism is a historical comparison between ADA’s current price movement and its pre-bull run behavior in late 2020. The analyst presented a chart showing an 805-day consolidation period that ended in ADA rising to its all-time high of $3.10 in 2021.
He identifies a similar pattern which began in 2021. ADA is currently in a 532-day consolidation phase and rising. Based on this historical data, Ali anticipates a potential repeat of ADA’s prior trajectory.
Based on a similar percentage increase observed in 2020, his revised forecast suggests weekly candles could propel ADA to $9.51 by December 2024, representing a 2,084.7% surge according to his chart.
Ali has set a higher target than his previous analysis where he predicted a climb to $8. With ADA constantly outperforming expectations, there are questions on whether it could use this surge as a launchpad to double-digit territory.
While Cardano is currently facing headwinds in the broader market correction, Ali stands firm in his optimistic outlook for the asset. Breaking out of the consolidation phase will be a huge moment for Cardano, as this will send it to a new all-time high and re-establish its place as a top player in the crypto market.
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