Cardano (ADA) may be gearing for an imminent 2,985% rally amid persistent consolidation between $0.24 and $0.46 for the past 329 days.
Cardano (ADA) is 37% down from the yearly peak of $0.4617 observed on April 15 amid constant declines. However, market watchers remain confident, as bullish patterns have been observed on multiple timeframes.
Prominent analyst Ali Martinez is the latest to share insights into Cardano’s current market conditions. In a post today on X, Ali called attention to a pattern observed between 2018 and 2020, eventually leading to a massive 2,985% surge.
— Ali (@ali_charts) August 14, 2023
The analyst cited data from an ADA weekly chart. Notably, following the drop from the high of $1.398 in January 2018, ADA slipped into bearish territories. ADA consolidated between a low of $0.028 and a high of $0.46 from April 2018 to February 2021.
This extensive consolidation persisted for 665 days. However, market participants continued to accumulate more tokens amid the downturn. Following the downtrend, ADA staged a massive rally, skyrocketing by 2,985% to an all-time high of $3.1 in September 2021.
ADA Faces Similar Pattern
Cardano faced a subsequent drop from the ATH, witnessing a retracement until August 2022. Another consolidation ensued, persisting for the past 329 days. Ali pointed out that ADA has ranged between $0.24 and $0.46 within this period.
According to the analyst, should ADA repeat its previous price movements, the market could witness another upsurge. He set a target period of February 2024, six months from now.
While Ali failed to present any price targets, market participants anticipate a rally similar to the previous upsurge. If ADA increases by 2,985% from its current value of $0.2903, its price would appreciate to $8.95, marking a new all-time high.
Sustained Whale Accumulation
Like the previous cycle, ADA is witnessing heightened whale accumulation amid this consolidation. Per Santiment data, addresses holding at least 100,000 ADA have increased to 25,294 as of press time, representing a 16-month high.
🐳 Trader sentiment toward #Cardano continues to be low as its market cap is down 35% since topping 4 months ago. However, the sharks & whales haven't been as deterred as one may think. There are now 25,294 wallets with 100K+ $ADA, the most in 16 months. https://t.co/Q5XKveRh5n pic.twitter.com/D0dcfM6LAy
— Santiment (@santimentfeed) August 14, 2023
Santiment emphasized that these shark and whale addresses have continued to augment their bags despite the downtrend. This pattern demonstrates a prevalence of bullish sentiments as investors anticipate an imminent price surge.