Cardano (ADA) is one of the most popular cryptocurrencies in the market, but it has been stuck in a consolidation phase for a long time. However, according to a crypto trading expert, this could change soon and ADA could soar to new heights.
Cardano’s consolidation resembles previous cycle
Cardano has been trading in a narrow range between $0.20 and $0.45 since July 2022, showing little volatility and direction. This consolidation phase is similar to the one that ADA experienced from 2018 to 2020, before it exploded in 2021 and reached an all-time high of $1.48 in May.
According to Ali Martinez, a crypto trading expert and analyst, this current trend offers two possible future outcomes for Cardano:
- “If history repeats, ADA could stay in this consolidation phase until July 2024. [However,]
- barring unforeseen events like the COVID-19 crash, ADA could break out as soon as December!”
Martinez based his prediction on the comparison of the volume and duration of the two consolidation cycles. He noted that the previous cycle lasted 95 weeks with a total volume of 88.218 billion ADA, while the current one is still in its 62nd week with a much lower volume of 5.025 billion ADA.
This suggests that there is less selling pressure and more accumulation happening in the market, which could lead to a strong breakout once the resistance level of $0.45 is breached.
Cardano’s fundamentals are strong and improving
Cardano is not only a promising cryptocurrency from a technical perspective, but also from a fundamental one. The project has been developing and delivering on its roadmap, launching several upgrades and features that enhance its functionality and adoption.
Some of the recent achievements of Cardano include:
- The successful deployment of the Alonzo hard fork, which enabled smart contract capabilities on the network and opened the door for decentralized applications (DApps) and decentralized finance (DeFi) protocols.
- The launch of several DApps and DeFi platforms on Cardano, such as SundaeSwap, Minswap, Liquid Finance, Cardax, and more.
- The announcement of partnerships and collaborations with various entities, such as Veritree, Chainlink, Dish Network, Boost Mobile, COTI, and more.
- The expansion of its global reach and social impact, especially in Africa, where it has secured deals with governments and organizations to provide digital identity, education, and financial inclusion solutions.
These developments have boosted Cardano’s reputation and credibility in the crypto space, as well as its popularity among investors and users. According to Finbold, Cardano beat all crypto projects in September developer activity, indicating a high level of innovation and progress.
Cardano’s price outlook is bullish
Cardano’s price has been lagging behind its fundamentals for a while, but this could change soon if Martinez’s prediction comes true. A breakout from the consolidation phase could trigger a new wave of buying pressure and momentum that could propel ADA to new highs.
Some analysts have set bullish targets for Cardano’s price in the short and long term. For instance, Machine learning algorithm sets Cardano price for October 31 at $0.32, which represents a 33% increase from the current level of $0.24.
In the long term, some experts believe that Cardano could reach $10 or even $100 in the next decade, depending on its adoption and innovation rate.
However, there are also some risks and challenges that Cardano faces, such as:
- The competition from other smart contract platforms, such as Ethereum, Solana, Polkadot, Avalanche, and more.
- The regulatory uncertainty and scrutiny that could affect the crypto industry as a whole.
- The technical difficulties and bugs that could arise from the complex and novel technology that Cardano uses.
Therefore, investors should be cautious and do their own research before investing in Cardano or any other cryptocurrency.
