Cardano could be on the verge of a rebound after retesting the support level of a multi-year, higher-timeframe bullish pattern.
Cardano (ADA) could bounce from here, analyst “The ChartWhisperer” suggested in an updated TradingView analysis on Sunday. This comes as the cryptocurrency pulls back to revisit a diamond bottom support on the 1-week chart.
Remarkably, ADA is already showing a glimpse of recovery. After three green daily candles from Friday to Sunday, the momentum has carried into this week, with Cardano rallying over 3% in the early hours of Monday.
Cardano Diamond Structure Support
For context, the analyst noted on September 2, 2024, that Cardano’s all-time chart formed a diamond bottom pattern. The weekly chart analysis shows that the coin has been trending within this diamond-shaped structure since April 2018.
Meanwhile, ADA broke out from the pattern in October 2023, moving from around $0.24 to March 2024’s high of $0.81. However, the coin entered a correctional phase after this peak price, retesting the diamond breakout area around $0.27 in August 2024.
A successful retest sparked another round of bullish momentum for Cardano, contributing to its strong price growth to its price high in December 2024. ADA soared from the lows of $0.27 to a high of $1.32, representing a 389% rise.
Back in Business
History seems to be repeating itself, as TheChartWhisperer highlighted a similar occurrence in Cardano’s price action. After the December 2024 high, it recorded another pullback, retracing 71% to the current levels.
The chart shows a flash crash to $0.27 on October 10, which retested the diamond bottom support, followed by a rebound to $0.70. Afterwards, the cryptocurrency has slowly chopped down to its low of $0.34 last week.
The analyst sees a repeat of previous price development from the support, stating that Cardano is “back in business.” From the current levels, he predicts a price surge to unprecedented heights.
Specifically, his ADA forecast of $48 remains firm. The commentator projected this move in his September 2024 Cardano price prediction. While it did not materialize then, the current retest of the major support has put the target back in play.
Notably, a $48 price represents a 12,531% increase from the current market price. With a circulating supply of 35.93 billion, this gives it a market cap of $1.72 trillion, closely aligning with Bitcoin’s current valuation. This shows how ambitious the analyst’s projection is. As a result, investors should not regard it as investment advice.
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.
