Market analyst Ali Martinez has drawn parallels between Cardano’s current trading consolidation and its pattern from 2018 to 2020. If history serves as a guide, Cardano might remain in this consolidation trend until July 2024.
Noting Patterns in Cardano’s Consolidation
According to the chart, Cardano showcased a marked rally from late 2018 to July 2019. However, this bullish phase faced a setback when the coin plummeted to $0.031 during the 2020 COVID-19 crisis, keeping ADA within a consolidation frame.
Interestingly, from March to July 2020, Cardano rebounded with a sharper incline than the previous year’s rally. This surge marked the end of that consolidation cycle, pushing ADA past the significant resistance level of $0.1.
Following this, a grand rally unfurled from Q4 2020 to September 2021. Within this window, Cardano hit its All-Time High (ATH) of $3.058, rocketing an astonishing 2984.75% from the point of its prior consolidation breakout.
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However, the good times didn’t last. The subsequent crypto winter dragged Cardano’s price to a low of $0.246 early this year, echoing the consolidation pattern observed from late 2018 to July 2020.
Could Cardano Break the Mold?
While the crypto market can often sway under unexpected influences, Cardano may break free from its consolidation trend earlier than Martinez’s July 2024 prediction.
Lately, Cardano has faced its fair share of scepticism, trailing in several metrics. Data from IntoTheBlock reveals a concerning downturn in profitable Cardano addresses; now, over 94% of the wallets are operating at a loss.
Yet, amid these challenges, Cardano’s prospects for long-term growth seem bright, especially considering its burgeoning Decentralized Finance (DeFi) ecosystem. ADA trades at $0.2466 as of this report, marking a minor uptick of 0.54% over the last 24 hours.