After more than 434 days of consolidation, Cardano (ADA) is poised for a significant breakout, signalling the beginning of a new macro bull run. The IOHK Group, EMURGO, and the Cardano Foundation support this prominent altcoin. ADA has become a magnet for web3 investors eager to contribute to its flourishing decentralised finance (DeFi) ecosystem.
Besides, the positive momentum has translated into a 50% increase in the Cardano price over the past four weeks, reaching around $0.366 as of Friday. In light of these developments, crypto analyst Ali Charts has made a compelling ADA price prediction.
According to Ali Charts, ADA will likely close the year trading around 75 cents. The analyst bases this bullish outlook on the striking resemblance of the current macro consolidation to the 2018-2020 bear market.
Significantly, he excluded the disruptive events of COVID-19’s Black Thursday. Ali Charts’ year-end prediction majorly hinges on ADA closing above 45 cents in the first week of December.
Cardano: Examining ADA Recent Price Action
ADA bulls face a crucial technical challenge in the weeks ahead as they strive to overturn resistance within the 41 to 46 cents range, preventing a potential correction towards 24 cents. The recent surge in ADA over the past four weeks sets it apart from the last 18 months. The surge is marked by a distinctive weekly RSI consistently surpassing 50 and currently operating in the 70 range.
A noteworthy aspect of the recent ADA rally is the 50-weekly Moving Average (MA) support, a role it has not played since the onset of the 2022 cryptocurrency bear market.
According to the daily auto Fib Retracement, ADA’s price could discover significant support at around 32 cents. This could offer a favourable entry point for additional buyers. However, the correction scenario could be averted if ADA manages to push its value towards 44 cents in the coming days.
Notable Network Development
The Cardano network has witnessed substantial advancements in its capabilities since it added smart contracts to its mainnet. In a recent development to enhance user experience, the Hydra Head scaling solution is now positioned for widespread adoption.
The Hydra Head helps Cardano scale up securely and reduces transaction fees. This is important, and people discussed it during the Summit 2023, where many developers came together. Crucially, the Cardano network leverages the Hydra Head, among other technologies, to reduce transaction fees.
Over the past year, the total staked ADA has surged dramatically, reaching approximately 669 million at the time of this report. Concurrently, Cardano’s mainnet development activity has experienced steady growth. The core technical team’s funding of web3 developers propels this growth.