Popular altcoin Cardano (ADA) can witness a significant rally by the end of the year if it crosses a significant resistance level.
The cryptocurrency market has been on a bullish trajectory in recent weeks, buoyed by a new wave of retail and institutional involvement. Amid the rise, Cardano (ADA) has excelled, chalking up nearly 50% gains in the past month.
However, according to widely followed crypto analyst Ali Charts, there could be more to come for ADA investors. In a recent update, the experienced trader shared a setup underlining ADA’s path to achieving a new yearly high, even as far as $0.75. Put more simply, ADA must record a 90% increase over the next six weeks to match such a bold prediction.
Admittedly, an increase of that size would not be easy to come by without an asset breaching major resistance levels. Hence, Ali notes that ADA must break the critical $0.45 resistance mark to climb to $0.75. Also, with the year almost running out, the 8th largest cryptocurrency must surpass $0.45 by the first week of December for that wild end-of-the-year rally to remain in play.
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Yet, such an outcome is not impossible, according to the analyst. Specifically, Ali Charts mentioned that ADA’s current consolidation phase mirrors a similar period for the asset between 2018 and 2020, but without the COVID-19 crash. Hence, ADA investors may enjoy a mouthwatering yearly close if history is anything to go by.
#Cardano's current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash!
Looking to trade this setup? Head… pic.twitter.com/u3KzOsZj2F
— Ali (@ali_charts) November 16, 2023
Cardano Ecosystem Growth Supports Price Action
As many experienced traders acknowledge, fundamentals play a key role alongside technical analysis in predicting the future value of an asset. Right now, though, ADA seems to have both catalysts in its favor.
The Cardano blockchain was recently earmarked as the leading platform for development activity. Additionally, user transactions have reached a new milestone, with the total value of assets locked across Cardano DeFi protocols on an upward trajectory.
Lastly, the asset’s recent price increase has been largely led by whale-buying activity, supporting predictions that a year-end rally remains on the cards for ADA. ADA trades at $0.374 at the time of writing, with a market cap of $13.2 billion.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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