A recent analysis has highlighted the possibility of a Cardano rebound, with a new chart setup tipped to spur another round of bullish price action.
Cardano is experiencing a significant dump, similar to most other cryptocurrencies. With Bitcoin falling below $100,000 yesterday for the first time since June, Cardano dropped over 6% to a five-month low of $0.49 before recovering slightly.
The apparent price weakness has now taken ADA’s loss to 17% in the past week and 36% over the last 30 days, raising concerns that the token and the broader cryptocurrency have entered a bear phase.
PO3 Pattern Suggests Upside Possibilities Remain
However, a TradingView analysis from OceanStaker suggests otherwise. The commentary highlighted that Cardano is following a Power of Three (PO3) price pattern and is entering phase 2 of the development.
ADA entered the first phase of this structure during the Donald Trump-inspired rally, which saw its price move from around $0.32 in early November to a peak of $1.32 in December 2024. The coin has consolidated within the phase until now.
An accompanying chart indicates that yesterday’s downtrend is propelling Cardano into phase 2, which is a period of price accumulation. The analyst expects this short phase to be marked by short-lived price corrections, but anticipates Cardano will hold the $0.435 price level.
Notably, this aligns with the lower support level of the accumulation box, which is approximately 18% below the current market price of $0.53.
Phase Three to Spark Cardano Rally
Meanwhile, after the accumulation phase, OceanStaker predicts a transition into phase 3, characterized by substantial upsides. The chart indicates that this phase will propel Cardano past the phase 1 high of $1.32 to greater heights.
Specifically, it could take Cardano past the $3 price mark, potentially retesting its 2021 peak and current all-time high of $3.10. This represents a 485% uptick from the current market price.
Notably, other chart components align with this narrative. The commentator noted that the MACD and RSI on the daily chart are in a downward trend, aligning with the prices. A breakout for these indicators alongside the PO3 pattern would further fuel the ADA climb.
Remarkably, “Cardano to $3” has become a common forecast a common prediction among analysts, as they expect a recovery to that level if altcoins enter their next bullish phase. Crypto Deezy is one of the analysts calling this price, citing a breakout from a descending channel. Permabull Dan Gambardello has also predicted that ADA will reach a $3 price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
