Despite its recent price struggles, one analyst believes that Cardano is trading in line with historical patterns and could hit $5 later this year.
The price of Cardano has dropped around 9% in the past 24 hours, following a bearish trend that has overwhelmed the broader market this week. The latest dip began after Cardano’s struggles to break above $0.8 earlier this month and a new outbreak of FUD in the project’s community.
However, these negative developments may not keep Cardano’s price low for too long, according to a new breakdown of the cryptocurrency’s price history shared by experienced analyst Ali Martinez. According to the analyst, Cardano’s latest price follows a similar pattern observed between 2018 and 2021.
Within that period, the price of ADA consolidated between $0.025 and $0.1 before a breakout that began in late 2020, leading to the all-time high of $3.10. The analysis suggests that Cardano is currently trading within the period before its breakout in the previous market cycle.
As a result, Ali Martinez predicts that following through on this pattern will see Cardano continue its consolidation between $0.55 and $0.8 in the coming weeks. Afterwards, the cryptocurrency will see a massive breakout that will surge its value as high as $1.7.
Martinez forecasts another consolidation phase after Cardano reaches the $1.7 price. He then adds that this will pave the way for a more bullish breakout that will see ADA reach $5 sometime before the end of 2024.
So far, #Cardano resembles the pattern observed from 2018 to 2021.
Should this fractal continue, anticipate $ADA to consolidate in the $0.55 to $0.80 range in the coming weeks, followed by a surge to $1.70. After this upswing, expect a period of further consolidation, setting… pic.twitter.com/46LIp2hkMx
— Ali (@ali_charts) March 16, 2024
Cardano Sees Correction as Earlier Predicted
Cardano’s latest price correction may have caught many off guard. However, it is worth mentioning that Ali Martinez accurately predicted the decline, writing about it earlier this month as the coin’s price rallied.
It remains to be seen then whether the bullish predictions follow suit. If it does, the recent calls for Cardano to hit $5 and even $10 could come within the realms of possibility and bring huge gains to ADA holders.
In the meantime, Cardano trades at $0.6195, far away from other bullish predictions that project the cryptocurrency going well into the double-digits range in the next few years.