Crypto Analyst Says Cardano “Ready For A Parabolic Bull Run,” Here’s Why
May 03 2024 - 3:00PM
NEWSBTC
An analyst has explained how, if the historical pattern followed by
the ADA price is to be believed, Cardano seems ready to go on a
parabolic bull run. Cardano May Be Set For A Bull Run Based On
Historical Trends In a new post on X, analyst Ali Martinez has
discussed what hints history may contain regarding where ADA’s
price would go next from here. First, here is a chart shared by the
analyst that shows the trend the cryptocurrency followed back in
2019: The pattern that the price of the asset followed a few years
back | Source: @ali_charts on X From the graph, it’s visible that
the asset had first consolidated inside a parallel channel during
this period. A “parallel channel” in technical analysis (TA) refers
to the region bounded by two parallel trend lines. Related Reading:
Bitcoin Loses Historical Level, Analyst Says “Reclaim And Bounce,
Or Die” The upper line of the pattern connects the tops in the
price, while the lower one joins the bottoms. When consolidating
inside the channel, the price is probable to find resistance at the
upper end and support at the lower one. A break out of either of
these lines can imply a continuation of the trend in that
direction. As is visible in the chart, ADA managed to break out of
this past parallel channel with a 75% surge. The asset then
followed this rally up with a correction of around 56% before
finally lifting off into a massive 4,095% bull run. Interestingly,
just like in 2019, Cardano was stuck inside a similar parallel
channel in 2023. The chart below shows this recent pattern for the
cryptocurrency. Looks like the price of the asset recently broke
out of its parallel channel | Source: @ali_charts on X As displayed
in the graph, Cardano broke out of this latest parallel channel a
while ago, this time with a rally of around 72%. Recently, though,
the asset has lost this bullish momentum, as it has seen a drawdown
of 50%. According to the analyst, however, this can, in fact, set
the stage for a new bull run. History doesn’t repeat itself, but it
often rhymes! If that is the case for Cardano, we should be
positioning ourselves for what’s coming, understanding that the
recent price correction might just be one of the last buy-the-dip
opportunities ADA will give you. Related Reading: Bitcoin On Track
For $1 Million Per BTC “Fair Value”, Analyst Says It now remains to
be seen whether ADA will repeat the pattern from the last bull run
or not. This is more about the long-term view, though, so where
might the asset go in the short term? This may be answered by a
signal that the analyst has shared in another X post. The TD
Sequential signal that the ADA price has formed recently | Source:
@ali_charts on X As Martinez explains: The TD Sequential, which
timed the Cardano top, now presents a buy signal on the ADA daily
chart. It anticipates a one to four daily candlesticks rebound that
could put an end to the ADA corrective phase. ADA Price At the time
of writing, Cardano is trading around $0.464, down 3% over the past
week. The price of the coin seems to have observed a sharp plunge
over the past month | Source: ADAUSD on TradingView Featured image
from Shutterstock.com, charts from TradingView.com
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