Cardano (ADA) has faced a challenging landscape since March 2024, experiencing a dramatic downturn that saw its price plummet nearly 66%. However, recent bullish movements in Bitcoin (BTC) could signal a turning tide for this Ethereum-killer. With the right momentum, ADA might be gearing up to replicate its impressive rally from late 2023.
Historical Context – The Q4 Surge
In the last three months of 2023, Cardano’s price surged an astounding 170%, peaking at $0.6769. This bullish momentum continued into early 2024, where ADA retraced slightly but ultimately soared another 81% by mid-March. Such rapid increases highlight Cardano’s potential to rebound, especially during bullish market cycles.
Current Price Action and Market Sentiment
Despite the ongoing downtrend, Cardano has managed to avoid setting lower lows since the crash on August 6. This stability indicates potential accumulation among sidelined buyers who are looking for entry points. If ADA can maintain its support structure around $0.320, it may set the stage for a retest of the $0.3923 resistance level.
Moreover, if this resistance turns into a support floor by the end of September 2024, Cardano could be perfectly positioned for another bullish Q4. The recent uptick in Bitcoin’s price—recently retesting $64K—further reinforces the possibility of a broader market resurgence.
Whales Are Back in Action
Data from Santiment reveals that whales holding between 10,000 to 1 million ADA are re-entering the market, reminiscent of their activity in late 2023. Additionally, larger holders (1 million to 10 million ADA) have accumulated approximately 160 million tokens since mid-July. This accumulation indicates renewed confidence among significant players in the ADA ecosystem, suggesting that a bullish sentiment may be brewing.
If Cardano’s price trajectory mirrors the remarkable 166% uptrend seen in late 2023, investors could see ADA nearing the $0.900 to $1.00 range. This potential price movement aligns with the historical performance of ADA during Q4, as past trends often inform future possibilities.
In summary, the outlook for Cardano as we head into the fourth quarter of 2024 appears increasingly bullish. With whales accumulating, support levels holding firm, and Bitcoin’s resurgence, ADA might just be on the brink of a significant rally. For investors, the next few weeks could present a pivotal moment for this promising cryptocurrency. Keep an eye on ADA—it could soon reclaim its position among the leading altcoins.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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