Market Veteran Says Cardano Has Set the Stage for a Parabolic Bull Run to $9.9

Notable crypto analyst Ali Martinez expects Cardano (ADA) to record a parabolic bull run to $9.9 following the latest 50% correction.

Cardano has not escaped the recent market bloodbath, having witnessed a major correction from this year’s peak above $0.81. ADA hit the $0.8104 high on March 14 as it rode on Bitcoin’s (BTC) uptrend which lasted from last October to the first quarter of the year.

However, Cardano is now down 43% from the $0.8104 high, having broken below multiple support levels to trade at the $0.46 level. Despite the ongoing downward slope, some market analysts remain confident of Cardano’s potential for a major recovery.

One such analyst, Ali Martinez, recently analyzed Cardano’s price movements and suggests that it may be on the cusp of a parabolic bull run, potentially reaching the elusive $9.9 mark.

ADA’s Historical Trends

Martinez’s analysis draws parallels between Cardano’s current market behavior and its historical trends. Citing data from an accompanying chart, he pointed out that a 50% price drop in ADA’s value over the past month mirrors a pattern observed in 2019. 

🧵 #Cardano seems ready for a parabolic bull run! Observing historical trends, the 50% price drop $ADA faced in the past month could be a golden opportunity.

Let's unpack the details and see why now might be the right time to buy the #ADA dip!

— Ali (@ali_charts) May 3, 2024

Notably, ADA’s price consolidated within a parallel channel from September 2018 to July 2020, exhibiting range-bound movements between support and resistance lines. This consolidation marked the end of the bear market at the time, as bullish sentiments slowly crept back into the market.

- Advertisement -

Following the consolidation phase, ADA experienced a breakout with a 75% surge, followed by a 56% correction. Such corrections are common after strong price increases and often serve as a setup for further gains. Interestingly, the 56% correction, which occurred in August and September 2020, led to an impressive 4,095% rally for ADA.

Cardano Looks to Repeat Its Monumental Run

Fast forward to 2023, and a similar pattern emerged. Cardano once again consolidated within a parallel channel from September 2022 to November 2023. ADA broke out with a 72% surge in December 2023. However, it has now undergone a 50% price correction. According to Martinez, this could be setting the stage for another significant bull run.

If Cardano follows its previous trajectory, the recent price correction could represent a golden opportunity for investors to buy ADA before a potential bull run, Martinez says. The analyst projects an imminent 2,489% increase from the cycle low of $0.409 to a new all-time high of $9.982.

Meanwhile, ADA is currently struggling to hold above the $0.46 psychological threshold, trading for $0.4644 at the reporting time. Cardano faces immense resistance at the 20-day SMA ($0.4693), with a break above this level capable of pushing it above the $0.50 level. On the other hand, the bulls must defend $0.4290 to foil any attempt at steeper declines.