Cardano ADA has suffered in a consolidation phase for several months, waiting for a bullish rally. Since March, the asset has fallen nearly 10%. ADA is up in the past year, but the majority of that climb came in a bullish market in March 2024. Fortunately, there is a growing bullish sentiment around the token, with analysts projecting an incoming rally and crediting several buy signals.
Indeed, one analyst is projecting a parabolic rally for Cardano ADA based on the token’s current technical setup. Crypto analyst TradingShot observed on Tuesday that the asset has triggered one of its most bullish buy signals in nearly a year. According to the analysis, Cardano’s one-week Logarithmic Moving Average Convergence Divergence (1W LMACD) has formed a bullish cross for the first time since October 2023. This signal marks a significant shift for ADA. The LMACD is one of the more important long-term buy signals, suggesting a surge may be coming soon for the Cardano Network’s native token.
Consolidation Period to Lead to Surge for Cardano ADA?
Furthermore, TradingShot adds that ADA has been consolidating below its 50-week moving average (1W MA50) since May. Typically, a consolidation phase comes before a breakout, which has been due for Cardano for some time now. ADA’s one-week Relative Strength Index (RSI) has been ranging, further indicating that the market has been mass accumulating the token. All of these factors point towards a breakout for any cryptocurrency, but the only question that lingers is when.
At press time, Cardano ADA is trading at $0.3833, up 14% in the past week. Over the last 2-3 weeks, the asset is on a slow climb, and that climb could steepen at any point. According to the expert, this combination suggests that Cardano could be at the start of a parabolic rally that may take it to new highs. TradingShot labels the $5.00 price threshold as a possible target for this cycle.
Some ADA bulls are even more bullish on Cardano. Dan Gambardello, a popular analyst on the Crypto Capital Venture’s YouTube channel, predicts a potential bullish reversal based on an analysis of the weekly and daily charts. According to the analyst, ADA is poised for a significant breakout, potentially reaching around $31. This would be a whopping 8,500% increase from current levels. This is a much more extreme and bullish prediction, however, it highlights the growing optimism around Cardano’s token. Predictions see the asset continuing its momentum beyond this month into the next. Who says that $31 can’t be achieved in the future?
