 ▲ Cardano (ADA) |
An analysis has suggested that Cardano (ADA) is ending its years-long tedious correction phase and forming a technical pattern similar to the one seen just before its explosive surge in the past, potentially setting the stage for a historic rally above $7.
According to cryptocurrency-focused media outlet The Crypto Basic on February 26 (local time), renowned market analyst Bitcoinsensus stated that Cardano is faithfully progressing through an accumulation phase on higher time frames, a signal that aligns with conditions preceding its unprecedented price surge in the past. After hitting its all-time high of $3.10 in September 2021, Cardano declined დაახლოებით 90%, enduring an extended correction period. However, on the monthly chart, it is now establishing a support base at the lower boundary of a multi-year range.
Bitcoinsensus noted that the current chart structure closely resembles the early stages seen just before previous large-scale expansion phases. On February 6, Cardano fell to $0.220, the lower boundary of its range, but successfully rebounded without breaking this support level. This is considered strong evidence that selling pressure in the market is gradually diminishing. Currently trading around $0.297, up approximately 35% from its recent low, Cardano is on the verge of closing its first bullish monthly candle in six months.
Historically, after prolonged sideways movement, Cardano has tended to create a decisive breakout and enter a so-called pump phase. A prime example is its parabolic rise from $0.0177 in March 2020 to $3.10. At present, Cardano is positioned in a transition zone between accumulation and expansion, and after confirming support, it is viewed as building momentum for a full-scale price breakout.
Bitcoinsensus predicts that if the current bullish momentum persists, Cardano could far surpass its previous high and reach the $7 level, representing a remarkable gain of over 2,257% from its current price. While achieving this target would require improved conditions across the broader crypto market and sustained demand, the analyst emphasized that, from a technical standpoint, Cardano has already reached a significant turning point.
In conclusion, Cardano appears to be breaking free from its multi-year downtrend and standing at the starting line of a new bullish cycle. With accumulation by large investors aligning with technical rebound signals, long-term targets beyond the $1 level are now being considered. As signs of an imminent breakout from its prolonged range continue to emerge, investors worldwide are watching closely to see whether Cardano can once again rise as a leading force in the altcoin market.
Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted solely for informational purposes.