Cardano (ADA) has returned to the radar of crypto investors after an interesting run brought its price up above $0.3. This price level has been elusive for a while but eventually, the bulls have gotten a hold of it. As the market faces an impending downturn, Cardano’s run-up could be threatened. However, one crypto analyst believes that ADA could have gone the way of Solana over the past few days.
Cardano Doing A Solana Run
In a TradingView post, crypto analyst Alan Santana revealed their expectations for the Cardano price. The initial post which was made on October 30 used the daily timeframe of the coin’s performance to figure out what could be ahead for it.
Santana points out that ADA continued to show bullish consolidation for the prior week which no doubt contributed to its rising prices. Eventually, the price did break out and ADA made a run for the $0.3 resistance and ended up beating it. But even this achievement is small fish compared to Solana’s 80% run.
The analyst pointed out that ADA did not retrace as expected by the bullish consolidation continued on the way up instead. Like with any consolidation in an asset, this helped Cardano to gather strength and momentum that could trigger a price pump.
Santana was proven right when ADA did eventually bear $0.3 and ran up as high as $0.31, after which came the update to the initial post. Here, the crypto analyst alludes to the correct market correction that brought Bitcoin back below $35,000 and noted that major altcoins will follow any retracement made by the market.
Source: Tradingview.com
However, for Cardano, the analyst noted that it is moving in the same way that Solana did to hit a new yearly high. In the last few days, the SOL price moved independently of Bitcoin and Cardano is starting to do the same. While Bitcoin is down 1.94% in the last day, Cardano is seeing 5% gains in the same time frame.
If this breakout continues, then ADA could break away from the Bitcoin trend completely and form its own. Following Solana’s rise, such a rally would put ADA well on the path toward the $0.4 resistance. “When the market is set to continue straight up, while some pairs will retrace a little bit others will continue growing with force,” the analyst said.
Santana’s chart points to a possible rise to $0.35 at the top of the rally. This would mean an 80% rise in price from the initial price at the time the analysis was made. Thus, a very similar rally pattern to that of Solana.
ADA Investors Take The Lead
Cardano’s rise over the last few days has not gone unnoticed and a recent report from on-chain tracker Santiment has hinted at what could be the possible driver behind it. According to the post, ADA whale and address activity rose quickly and touched 32% in the last three weeks. This brought the on-chain activity to a new three-month high.
The price which seems to be hell-bent on pulling a Solana also rose 36% in a two-week period, making it one of the top winners during this time. A continuation of this on-chain activity trend will push the price further in the coming weeks.
Source: Santiment on X
However, with the price having risen so much, some level of profit-taking is expected. This would inadvertently lead to a price dip. But as long as demand stays up, it’ll only be a temporary setback.
ADA price clears $0.32 | Source: ADAUSD On Tradingview.com
Featured image from Bitcoin News, chart from Tradingview.com
Source: https://www.newsbtc.com/news/cardano/cardano-replicate-solana-80-rise/