Cryptocurrencies held steady on Thursday after most of them staged a strong recovery a day earlier. Cardano price was trading at $0.99 as crypto analysts predicted that ADA was about to make a strong comeback. One analyst expects that the coin will jump to $6 in the coming weeks.
Crypto Analyst Predicts Cardano Price Will Hit $6
Most crypto analysts were upbeat about the Cardano price after Bitwise filed for a spot exchange-traded fund (ETF). The view is that the fund will be approved in the Donald Trump administration since he is expected to appoint a SEC head who is friendly to the industry.
One of the most optimistic analysts was Ali Martinez, who has accumulated 90,000 followers on X. In a post, he predicted that the value of ADA would ultimately jump to $6 between July and September next year. If this view is accurate, it means that the coin will need to jump by 500% from the current level.
A 500% jump is highly possible in the crypto industry. Cardano itself has jumped by 220% in the past three weeks. It has also jumped by over 1,000% from its lowest point in 2020. As such, it is possible to replicate this performance if the crypto bull run continues.
Martinez, who has many accurate predictions in the past, based his thesis on technicals based on Cardano’s history. He believes that the coin will first jump and retest the all-time high of $3 and then double from that.
Analysts also cite Cardano’s close correlation with Bitcoin, the biggest crypto in the industry. Data by IntoTheBlock show that it has a correlation coefficient of 0.94, meaning that it will likely track Bitcoin’s move. In a statement this, week, Charles Hoskinson, Cardano’s founder, estimated that Bitcoin will ultimately jump to $500,000, meaning that ADA will benefit.
ADA Price Is Forning A Bullish Pennant Pattern
Cardano price has formed numerous highly bullish patterns. It has formed a hammer candlestick pattern on the daily chart. This pattern has a small body and a long lower shadow and is a popular bullish reversal sign.
There are signs that the coin is forming a bullish pennant candlestick pattern. This pattern is made up of a long vertical line and a symmetrical triangle pattern. It often leads to a strong bullish breakout when the triangle is nearing the confluence.
Cardano also formed a golden cross pattern on November 14. This cross happens when the 200-day and 50-day moving averages cross each other. Therefore, a bullish Cardano price prediction will be confirmed if it rises above $1.152, its highest point this year. If this happens, it could jump to the next point at $1.20. A drop below the lower side of the hammer at $0.87 will invalidate the bullish view and point to more downside to $0.50.
Frequently Asked Questions (FAQs)
Yes, but it will take time. Cardano just needs to jump by 500% to get to that target, something it has done in the past.
The stop-loss should be at $0.876, the lower side of the hammer pattern that formed on Tuesday this week. A drop below that level will point to more downside as it will signal that there are sellers.
It has formed a bullish pennant pattern, a hammer, and a golden cross chart pattern, pointing to more gains in the near term.
crispus
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/can-cardano-price-jump-by-500-to-6/
✓ Share: