Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, is sparking renewed interest following its recent price movements and ecosystem developments. Crypto analyst Ali Martinez has pointed out a historical pattern in ADA’s performance that suggests a significant upward trajectory, with a potential price target of $6.
Analyst Predicts $6 for ADA
Ali Martinez highlights that Cardano’s current correction phase mirrors its market behavior during the early stages of its 2020 bull cycle. If this trend repeats, ADA could reach $6—a dramatic increase from its current trading price of $0.8968. Over the past 24 hours, ADA has gained 3.8%, but it remains down 18.70% for the week, contributing to $246 million in overall cryptocurrency liquidations.
#Cardano $ADA is following an eerily similar pattern to its previous cycle. Back in 2020, the first major correction after the bull rally began happened at the very same time as the correction we are experiencing today.
— Ali (@ali_charts) December 22, 2024
$6 next! pic.twitter.com/CPrYdQQqyx
Recent Price Movements
After a four-day losing streak, ADA saw a short-lived recovery, bouncing from $0.762 before hitting resistance at $0.997. The cryptocurrency has since retraced to $0.869, a level near its 50-day Simple Moving Average (SMA).
Holding above the $0.869 support level is crucial for ADA’s short-term outlook. A breakdown could lead to further declines, with targets at $0.76, $0.69, or even $0.50. Conversely, sustained recovery may see ADA challenge the $1 resistance level.
Plomin Hard Fork: Advancing Ecosystem Governance
Cardano’s potential price gains are underpinned by its ecosystem advancements, including the upcoming Plomin hard fork. Intersect, a member-driven organization in the Cardano ecosystem, announced the submission of a governance action for the hard fork to Input Output Global (IOG), stake pool operators (SPOs), and the Intersect Constitutional Committee (ICC).
Also Read: Cardano’s 2020 Déjà Vu: Could ADA Rally to $6 Despite Market Downturn?
This upgrade, based on Cardano Improvement Proposal (CIP)-1694, will enable full on-chain governance, marking the conclusion of Cardano’s technical bootstrapping phase. Once implemented, the system will allow the submission of a community-endorsed Constitution on-chain for consideration.
Timeline for Plomin Hard Fork
The governance action was submitted in epoch 529, with the earliest implementation date set for January 4, 2025. Additional potential dates include January 9, 14, 19, 24, and 29, depending on procedural requirements.
Cardano’s dual focus on price recovery and ecosystem upgrades positions it as a compelling option for investors. While the $6 price target offers optimism, the highly volatile nature of cryptocurrency markets necessitates caution. The success of governance developments like the Plomin hard fork could be pivotal in shaping ADA’s long-term trajectory.
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.
About The Author
