Cardano (ADA) is showing signs of entering a new bullish phase, according to a recent analysis, with price targets projecting a 2,257% increase.
ADA has continued to follow the direction of the broader market, recently trading within a range of $0.408 to $0.430. Amid the prevailing market uncertainty, SpartaBTC, a renowned Bitcoin analyst, recently presented an analysis on TradingView that predicts a substantial price increase for Cardano.
Cardano Previous Accumulation Phase
In his analysis, SpartaBTC highlighted key historical price movements for ADA. He noted that Cardano experienced a significant accumulation phase from November 2018 to June 2020. During this period, ADA’s price consolidated between $0.027 and $0.117.
The average accumulation price was around $0.0440. This phase laid the groundwork for a massive rally. In June 2020, ADA broke out of this accumulation zone, surging to $0.38 by January 2021. This increase marked a 763% rise from the average accumulation price.
Following this initial rally, ADA faced a brief consolidation before continuing its upward trajectory. By August 2021, Cardano reached its all-time high of $3.1, representing a 6,744% increase from the average accumulation price. However, after hitting this peak, ADA’s price plummeted by over 91%, dropping to a low of $0.23 in June 2023.
Latest Accumulation Phase
SpartaBTC’s analysis suggests that Cardano entered another accumulation phase, similar to the one from November 2018 to June 2020. This latest accumulation phase lasted from October 2022 to November 2023. During this time, ADA’s price remained relatively stable, setting the stage for the next potential breakout.
In March 2024, Cardano attempted to rally, reaching $0.81. However, it faced rejection at this level, leading to a correction. Despite this setback, SpartaBTC identifies a bullish pattern known as a falling wedge. Another analyst also spotted the formation of this wedge pattern.
This pattern indicates that the downtrend is losing momentum and often precedes a significant price increase. Based on this formation, SpartaBTC has set an initial price target of $1.96, which would represent a 650% surge from the current levels.
Cardano Targets $9.5
However, the most ambitious target is $9.5. This projection represents a 2,257% increase from Cardano’s current price of approximately $0.403. Notably, in the short-term, ADA is looking to end a losing streak that began on July 28. The token has risen by a meager 0.25% this morning.
Meanwhile, SpartaBTC provided a daily chart analysis confirming Cardano’s bullish prospects for the short term. The chart highlights the falling wedge pattern, with SpartaBTC identifying an immediate target of $0.8918. This target marks a 97.66% increase from the July 18 resistance level at $0.4489.
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