Cardano Poised for Parabolic Move as History Repeats Itself: Analyst Says ADA Is In Long-Term Buy Zone
Cardano (ADA), the popular proof-of-stake blockchain platform, is currently experiencing a significant correction after a six-week green streak. However, technical analysis suggests that this correction may be setting the stage for a major bull run, with ADA potentially reaching $7 or even $8 in 2025.
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Long-Term Outlook: ADA to Soar in 2024-2025
Alan Santana’s recent technical analysis predicts that Cardano will surpass $7 in 2025, potentially reaching $8 or higher as the cryptocurrency market transitions into its bull-market phase.
Santana observes that 2023 marked a recovery year with a relief rally, and he anticipates that the current correction will result in a long-term higher low, subsequently leading to a significant bull market.
The analysis predicts significant growth for Cardano in the latter part of 2024 and most of 2025, with the “big green” anticipated during this period. Despite the current red candles, Santana emphasizes that the six-week green streak is a positive sign, and the correction won’t continue indefinitely.
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Show more +History Repeating Itself: The October 2020 Scenario
Trend Rider, a prominent crypto analyst, has drawn attention to a striking similarity between the current ADA price action and the events of October 2020. In October 2020, ADA’s price dipped to $0.10 before embarking on a parabolic move that saw it reach $3.
Trend Rider suggests that if history repeats itself, Cardano might be on the cusp of its ultimate support test before skyrocketing once again. The analyst points out a bullish RSI (Relative Strength Index) crossover and retest as indications that ADA may be gearing up for another parabolic move.
Managing Risk and Expectations
As fear levels peak during the testing of major support levels, Trend Rider emphasizes the importance of navigating through this period with caution. The analyst has provided a detailed short-term analysis in their latest tweet, aimed at helping investors manage risk and set realistic expectations.
The Importance of Support Levels
Technical analysis relies heavily on support levels, which signify price levels where demand surpasses supply, thereby halting further price declines. When a cryptocurrency tests a major support level and bounces back, it often indicates a strong foundation for future price appreciation.
Cardano’s current correction and testing of support levels may be a necessary step before the next major bull run. As investors closely monitor ADA’s price action, the ability to hold above key support levels will be a critical factor in determining the cryptocurrency’s short-term and long-term trajectory.
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