Market Analysts Say Cardano Likely to Soar 200% if this ADA Accumulation Zone Holds
Add ZyCrypto News On GoogleCardano (ADA) traded in a tight range on Thursday, showing limited price movement despite a noticeable increase in market liquidity. Over the past week, ADA has declined by nearly...
Cardano (ADA) traded in a tight range on Thursday, showing limited price movement despite a noticeable increase in market liquidity.
Over the past week, ADA has declined by nearly 8%, reflecting broader selling pressure across the cryptocurrency market.
Despite the recent weakness, analysts remain focused on key support levels that could stabilize price action. If these zones hold, Cardano may be positioned for a sharp rebound as buyers step back in.
According to popular analyst Ali Charts, in the last two instances when the cryptocurrency traded near $0.25, the asset surged by 85% and 200%, respectively. On Tuesday, the analyst hinted at the potential for a repeat rally.
Meanwhile, popular analytics firm Santiment highlighted that the average Cardano wallet active over the past year is experiencing a net loss of 43%.
Notably, while the coin has seen a staggering 71% drop since September, largely driven by whale selling earlier this month, the firm noted that such extreme negative MVRV (Market Value to Realized Value) metrics often signal an attractive buying opportunity.
“When average returns are severely negative, this is an indication of a looming turnaround with coins always averaging 0% on MVRV’s (average trading returns) across any timeframe.” The firm stated. “So when other traders are in severe pain, key stakeholders and professional traders are intrigued by this due to the lowered risk of buying or adding on to their positions.”
Additionally, the firm drew attention to Cardano’s funding rate on Binance, which currently shows the highest short-to-long ratio since June 2023.
Typically, when traders overwhelmingly bet on a decline, it can set the stage for a contrary price movement. This pattern has historically marked bottom zones for ADA, as forced liquidations of these short positions can propel prices in unexpected directions, catching bearish traders off guard.
Elsewhere, analyst Crypto Patel highlighted that Cardano is sitting on a multi-year accumulation zone between $0.18 and $0.25.
In a post on X, he suggested that if this zone holds, ADA could embark on a series of explosive moves, with potential price targets ranging from $1 to $10.
“Accumulation Zone: $0.25-$0.18. Targets: $1 ⮕ $3 ⮕ $10. NFA & ALWAYS DYOR,” he wrote, emphasizing the high-risk, high-reward nature of such a setup.
Beyond technicals, fundamental developments are also drawing attention. On Tuesday, Charles Hoskinson teased the launch of “Midnight,” a privacy-focused network expected to operate as a Cardano partner chain, later this week.
The project has already secured notable partnerships, including involvement from Google and firms like Bullish and Worldpay as federated node operators, signaling growing ecosystem expansion, which could be a boon for ADA’s price.
At press time, ADA was trading at $0.25, reflecting a 5.43% drop in the past 24 hours.
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