Cardano (ADA) could go there through lackluster price development for now, but analyst Ali Martinez thinks the crypto could be gearing up for a parabolic run. Speaking to social media platform X, Martinez talked about complex pricing analysis that ADA investors might find attractive.
In particular, the analyst noted that the current price formation of the cryptocurrency shows the signs of a return, according to its price history.
Cardano Price History Shows Signs of Comeback
Cardano price has been on a path of correction since mid-March, when it peaked at $0.79. Interestingly, current price levels mean the cryptocurrency has corrected by over 40% from that high.
This has sparked concerns from some investors about ADA's price trajectory for the rest of the years, especially given various inactivity and other issues surrounding the cryptocurrency. However, according to Martinez, this cycle is normal for cryptocurrency.
The renowned analyst's view on ADA is based on its historical trend. According to the 1M ADA/USD time chart shared by Martinez, the 50% ADA price drop recorded over the past month could be a golden opportunity for crypto investors to position themselves for a price rise.
Looking at ADA's price history shows that this may just be a temporary setback before the next rally. Similar price action occurred between 2019 and 2020 before hitting new all-time highs in 2021.
Total crypto market cap currently at $2.29 trillion. Chart: TradingView
After breaking out of a consolidation channel in 2020, ADA saw a 75% surge and then a 56% correction over three months. This correction was quickly forgotten as ADA rebounded and completed an impressive 4,095% rise to reach its current all-time high of $3.09.
As Martinez noted, similar price action appears to be occurring. ADA recently broke out of a consolidation channel that played out for most of 2023. This breakout above the channel saw ADA rally 72% before its recent correction.
If history were to repeat itself, ADA could trigger a parabolic run in May and reach new highs in the coming months. Martinez predicted a 2,480% price rise to $9.98 over the next nine months.
History doesn't repeat itself, but it often rhymes!
If this is the case for #Cardanowe should position ourselves for what's to come, knowing that the recent price correction may well be one of the last opportunities to buy the dip. $ADA will give you. pic.twitter.com/wlKs7fNhb8
– Ali (@ali_charts) May 3, 2024
What to expect in Cardano's next Bull Run
It is important to note that the cryptocurrency market has evolved significantly since 2021 and crypto assets have become less volatile, especially during uptrends. Many things must be put in place to make a $9 ADA price a reality.
For example, there must be a wider influx and the widespread adoption of cryptocurrencies. According to crypto prediction site Telegaon, Cardano could reach the $9 price level by the end of the decade.
Martinez believes the recent price correction may actually be one of the last dip buying opportunities for investors in ADA. At the time of writing, ADA is trading at $0.4638 and is down 1% in the last 24 hours.
Featured image from Pexels, chart from TradingView
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