Where Is Cardano Going Next: Analyst

Analysts From Crypto Capital Ventures maintain a Bullish market outlook for Cardano (ADA) despite the current market conditions, underscoring the cyclical nature of markets.

The experts highlight how Bitcoin’s (BTC) movements pave the way for altcoin seasons, noting that a bull cycle for altcoins is likely but not immediately after Bitcoin’s dominance declines. According to them, historical data shows that altcoin seasons typically commence about 220-224 days following a decline in Bitcoin dominance. This delay might disappoint some investors, but the experts advise patience, pointing to the long-term potential of these cycles.

The analysts also compare its current market position to previous cycles. Although ADA remains down from its all-time high, the data suggests Cardano is better positioned than in the last cycle. Previously, ADA was down 94% from its peak during Bitcoin’s bull market breakout, while it currently stands at an 85% reduction. According to experts, this improvement suggests an even more substantial potential for recovery and growth once the altcoin season begins. Despite this, analysts from More Crypto Online predict Cardano coil soon hit a $0.399 low.

Additionally, they draw parallels with Ethereum’s (ETH) historical performance, suggesting a potential similar uptrend for ADA after a brief downturn. This pattern indicates a promising future for Cardano, urging investors to focus on long-term gains despite short-term fluctuations.

The experts also analyzed the normalcy of Cardano’s underperformance in historical market cycles. According to them, a potential bearish divergence could be a topic of future discussions. The expert examines ADA’s price chart, predicting a consolidation period challenged by resistance from moving averages, which might lead to a significant pullback before a robust bull market ensues. This comes as Michael Wrubell predicts Cardano is about to explode.

Cardano Market Outlook: How Is ADA Looking Today?

Looking at an in-depth analysis, we see a falling wedge pattern forming over the observed period. This pattern is bullish, often signaling a potential reversal to the upside when the price breaks through the upper resistance line. The price has been making lower highs and lower lows, which has resulted in the formation of a falling wedge. We could see a move to approximately $0.52 if the pattern completes with a breakout to the upside. 

2-hour ADA/USD Chart | Source: TradingView

On the other hand, the Woodies CCI (Commodity Channel Index) oscillates around -47, which shows that the price has been relatively oversold, supporting the likelihood of a bullish reversal. On the other hand, the Volume Oscillator shows a slight decrease in volume, which is typical during the formation of a falling wedge. Decreasing volume tends to confirm the validity of the wedge pattern. Looking at stats from CoinMarketCap, we see that the token traded at $0.4324 as of 10:40 a.m. UTC, representing a 1.4% increase within the last 24 hours.