Cardano Mirrors Previous Bull Cycle: Analyst Eyes $10 for ADA If This Happens

Cardano (ADA), the popular smart contract platform, is showing signs of a potential bullish continuation as its price action appears to be mirroring patterns observed in its previous bull cycle.

As ADA consolidates above key support levels, traders and analysts are growing increasingly optimistic about the token’s prospects, with some even suggesting a potential parabolic move toward $10 in the future.

Cardano Follows Previous Bullish Cycle Pattern

Crypto trader Ali recently noted that Cardano’s current price action seems to be following a similar pattern to its previous bullish cycle. If this trend continues, Ali suggests that ADA could experience a brief correction before embarking on a parabolic rally toward the $10 mark.

Cardano seems to be mirroring its previous bullish cycle. If this pattern continues, we could witness a brief correction before ADA goes parabolic toward $10!” Ali tweeted.

The trader’s observation highlights the potential for Cardano to repeat its past performance, which could lead to significant gains for investors if the pattern holds true.

ADA Bounces Perfectly from $0.75 Support

Another trader, Sssebi, pointed out that Cardano has achieved a perfect bounce from the $0.75 support level, effectively turning previous resistance into support. This technical development is a bullish sign for ADA, as it suggests that the token may have established a strong foundation for future price appreciation.

Sssebi also noted that ADA is currently moving within an ascending channel, with the next target around $0.84. A breakout above this channel could propel ADA into the $1 area, while a breakdown could lead to a retracement toward $0.60.

“ADA gets a perfect bounce from $0.75, turning previous resistance into support. Currently ADA is moving within this ascending channel, next target is around $0.84. A break out of the channel could send $ADA in the $1 area while a break down could send ADA at $0.60,” Sssebi explained.

Understanding the RSI and 200-Day Moving Average

Cardano’s daily RSI (Relative Strength Index) currently stands at 79.16, indicating that the token is in overbought territory. The RSI is a momentum oscillator that measures the speed and change of price movements, with readings above 70 suggesting that an asset may be overbought and potentially due for a correction.

However, it’s important to note that during strong bull markets, assets can remain overbought for extended periods, and the RSI alone should not be relied upon as a sole indicator for making trading decisions.

Explosion in Meme Coin Market; How to find potential successors to $WIF, $PEPE, and $BONK?🤫

The key? Getting in early, especially during the ICO phase. Check out NuggetRush today! This new memecoin combines play-to-earn gaming with authentic gold mining ventures. Seize the opportunity with ongoing presale prices! Plus, prepare for $NUGX’s upcoming launch on major exchanges.

Show more +

Another key technical level to watch is the 200-day moving average (MA), which currently stands at $0.4202 for Cardano. The 200-day MA is a widely followed long-term trend indicator, and ADA’s ability to maintain above this level suggests that the token remains in a long-term uptrend.

Source: CoinGecko

Over the past 7 days, ADA has gained 0.7%, while its 30-day and 1-year performance shows gains of 24.8% and 52.6%, respectively. These positive returns across multiple time frames underscore the bullish sentiment surrounding Cardano.

As Cardano continues to navigate its current bull cycle, traders and investors will be closely monitoring key technical levels and patterns for signs of a potential breakout or correction. While the RSI suggests that ADA may be overbought in the short term, the token’s ability to mirror its previous bullish cycle and maintain above crucial support levels bodes well for its future prospects, with some analysts even eyeing a potential parabolic move toward $10 in the coming months.

You may also be interested in:

Check NuggetRush ($NUGX)

Sponsored: Invest Responsibly, Do Your Own Research.
Being in its ICO stage, NuggetRush offers a prime opportunity for early investors to get in at potentially lower prices
A unique play-to-earn gaming platform in the memecoin market
The platform combines artisanal and gold mining with cryptocurrencies in an unusual gaming context, offering a distinctive and immersive experience
Fosters a strong community by encouraging physical meetups among members
NFT Integration with Prominent Characters
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency

CaptainAltcoin
Logo