Cardano Follows 2020 Bullish Pattern – Top Analyst Plans To Take Profits Between $4 And $6

Cardano (ADA) faced a 23% retrace from its local highs yesterday, following a volatile day that saw many altcoins lose ground. Despite the correction, ADA has been one of the top-performing altcoins since November 5, showcasing its resilience amid market fluctuations. Investors remain optimistic that Cardano will continue outperforming as the broader crypto market gains momentum.

Top analyst Ali Martinez shared a technical analysis on X, highlighting striking similarities between ADA’s current price chart and its 2020 performance—a year marked a bullish phase for altcoins. According to Martinez, this resemblance suggests Cardano might be gearing up for another significant rally. However, the next few weeks will be critical for confirming this trajectory, particularly as Bitcoin continues to drive the market with its strong upward momentum.

The interplay between Bitcoin’s performance and altcoin activity will be pivotal in shaping ADA’s price action. If Bitcoin sustains its bullish cycle, altcoins like Cardano will likely “wake up” and follow suit. For ADA, holding above key support levels and breaking back toward its recent highs will be essential to sustain investor confidence and set the stage for a potential breakout as the market evolves.

Cardano Rally Could Continue

Cardano has delivered an extraordinary performance since November 5, surging over 300% in under a month. This impressive rally has captured the attention of investors and analysts, making ADA one of the standout performers in the altcoin market. However, the recent sharp drop has sparked concerns about the potential for a deeper correction, leaving many investors on edge.

Analyst and investor Ali Martinez recently shared an optimistic perspective on ADA’s trajectory via X. According to Martinez, Cardano’s current price action mirrors its behavior during 2020, preceding a massive bull run. 

Martinez acknowledges the possibility of a dip to $0.76 but views it as a buying opportunity, underscoring his confidence by stating his plans to book profits between $4 and $6. His analysis suggests that the current pullback is a natural part of ADA’s larger bullish cycle rather than a signal of weakness.

Despite the recent retrace, key metrics and positive market sentiment support the case for ADA’s upward trajectory. Cardano’s robust performance over the past month highlights its resilience, and many investors remain optimistic about its long-term potential. As the crypto market evolves, ADA’s ability to hold key support levels and regain momentum will be critical in determining its next move.

Price Holding Above Key Level

Cardano (ADA) is trading at $1.01 after experiencing a sharp 20% dip yesterday. Despite this significant pullback, ADA has demonstrated resilience, holding firm above the critical support level of $0.87. This level has proven to be a strong foundation for ADA’s price action, suggesting that the asset remains well-positioned for further upward momentum.

For ADA to continue its bullish trajectory, it must maintain its position above $0.90 in the coming days, solidifying investor confidence. However, the next critical milestone lies at the $1.25 resistance level. Breaking above this threshold will be crucial for ADA, as it would signal renewed buying interest and a potential continuation of its rally.

Should ADA successfully hold above $0.90 and breach the $1.25 mark, the stage will be set for a massive continuation in its price. Such a move could attract more investors and further solidify ADA’s position as a top-performing altcoin. With the broader crypto market showing signs of strength, the coming weeks will be pivotal for ADA as it attempts to recover from recent volatility and push toward new highs.

Featured image from Dall-E, chart from TradingView

Source: NewsBTC.com