Here’s How Cardano’s 17% Weekly Correction Can Help ADA Hit $6 This Cycle: Analyst
TL:DR;
- Cardano’s native cryptocurrency, alongside the rest of the market, has slumped hard on a weekly basis, dropping to well below $1.
- However, history shows that similar corrections have been followed by massive gains for the asset, with predictions of up to $6.
ADA’s recent price performance could be analyzed from two main perspectives – short-term and long-term. When looking at the past ten days or so, the landscape is quite gloomy. Within this timeframe, the asset went from $1.2 to under $0.8. Although it has recovered some ground to $0.9 now, it is still 25% down since December 12.
The broader landscape, though, shows a different picture. ADA’s price stood in a tight range between $0.3 and $0.4 for weeks ahead of the US presidential elections and the subsequent promising words by IOG’s founder, Charles Hoskinson.
It exploded to a new multi-year peak of over $1.3 later on, and even now, with its correction to $0.9, it is still 160% up in less than two months.
The first scenario is more painful for now, but when analyzing larger cycles, such as the current bull one, the second plays a more important role. Consequently, crypto analyst Ali Martinez focused on the long-term perspective to determine that ADA’s most recent correction could actually be a blessing in disguise.
He noted that the token has followed an ‘eerily similar pattern’ to the previous cycle in 2020. Back then, the asset’s first major retracement after a substantial rally “happened at the very same time as the correction we are experiencing today.”
As such, he believes ADA could shoot past its 2021 ATH of $3.09 (according to CoinGecko) and hit a new peak of $6.
#Cardano $ADA is following an eerily similar pattern to its previous cycle. Back in 2020, the first major correction after the bull rally began happened at the very same time as the correction we are experiencing today.
$6 next! pic.twitter.com/CPrYdQQqyx
— Ali (@ali_charts) December 22, 2024
It’s worth noting that such a price tag would put ADA’s market capitalization at well above $200 billion, which would make the asset the third-largest, at least according to how the market looks today.
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