Cardano (ADA) is showing promising signs of a potential breakout, according to a recent analysis by SpartaBTC. The renowned Bitcoin analyst has identified a historical pattern suggesting a substantial price increase for the cryptocurrency.
SpartaBTC drew parallels between Cardano’s current price action and its previous accumulation phase from November 2018 to June 2020. During this period, ADA consolidated within a tight range before embarking on a parabolic rally that saw its price surge by 763%.
Following a similar pattern, Cardano appears to have undergone another accumulation phase from October 2022 to November 2023. This period of consolidation has laid the groundwork for a potential breakout, according to the analyst.
To support his bullish thesis, SpartaBTC identified a falling wedge pattern on Cardano’s chart. This technical formation often signals a reversal of a downtrend and is typically followed by a significant price increase. Based on this pattern, the analyst has set an initial price target of $1.96, representing a 650% surge from current levels.
However, SpartaBTC’s most ambitious target is even more staggering. The analyst believes that Cardano could eventually reach $9.5, representing a massive 2,257% increase from its current price.
While these projections are undoubtedly bullish, it’s important to note that the cryptocurrency market is highly volatile, and past performance is not indicative of future results. Traders should exercise caution and conduct their own research before making investment decisions.
Also Read: Cardano (ADA) Stages Mini-Rally! Can It Overcome Volume & Open Interest Slump?
Cardano is currently attempting to break free from a short-term downtrend, and its success in doing so will be crucial for the realization of these bullish targets.
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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