Cardano may be on the verge of a major breakout, mirroring the explosive rally XRP exhibited earlier, according to crypto analyst Trader Steve.
Steve shared this outlook in a recent tweet, expressing strong confidence in Cardano’s potential for a rebound. He highlighted his focus on Fibonacci retracement levels.
Cardano Prospect to Replicate XRP Sucess
The accompanying chart points to key support zones around the 61.8% and 78.6% Fibonacci levels for Cardano. It also marks a higher high (HH) and outlines a potential bullish path in gray.
The analysis suggests ADA could replicate the major rally XRP experienced from November to December 2024. During this time, XRP broke through multiple resistance levels, setting higher highs and reaching a seven-year peak above the $2 range. In January, XRP’s momentum continued, bringing it close to reclaiming its 2018 all-time high.
In contrast, Cardano saw less significant price movement during the same period. Notably, ADA has failed to surpass its December 2024 high of $1.32 since reaching that level in the first week of the month.
With Cardano currently trading around $0.70, Trader Steve is closely monitoring whether it can regain higher levels and approach the 2021 highs, similar to XRP’s recent performance.
“I have a gut feeling ADA is ready to pull an XRP,” he said.
Meanwhile, crypto trader Yoel Jr. weighed in on the analysis, suggesting that ADA must close above $0.81 to confirm a bullish trend. He warned that failing to do so could leave the asset stuck in what he calls the “boring zone” for an extended period.
ADA May Dip First Before a Major Rebound
In a separate post, analyst Jonathan Carter noted that Cardano is forming a bull flag pattern on the 1-day chart, suggesting the potential for upward momentum. However, he stressed that the price needs to test support one more time before continuing higher.
Carter mentioned that while the current price offers limited upside potential, better entry opportunities could appear near the $0.60 support level if a dip occurs.
If ADA secures a crucial bounce from this level, it could set the stage for a more extended rally, potentially revisiting previous highs. Specifically, Carter highlighted that a bounce could lead to price targets at $0.845, $1, and $1.325.
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