Cardano (ADA) might be going through a lackluster price action at the moment, but analyst Ali Martinez believes the crypto might be gearing up for a parabolic run. While taking to social media platform X, Martinez talked about an intricate price analysis that ADA investors might find appealing.
Particularly, the analyst noted that the cryptocurrency’s current price formation is showing signs of a comeback, according to its price history.
Cardano Price History Shows Signs Of Comeback
The price of Cardano has been on a correction path since the middle of March when it peaked at $0.79. Interestingly, current price levels means that the cryptocurrency has corrected over 40% from this peak.
This has led to concerns from some investors about the ADA’s price trajectory for the rest of the years, particularly considering different inactivity concerns and others surrounding the cryptocurrency. However, according to Martinez, this cycle is normal for the cryptocurrency.
The renowned analyst’s take on ADA is based on its historical trend. According to the 1M ADA/USD timeframe chart shared by Martinez, the 50% price drop ADA recorded in the past month could be a golden opportunity for crypto investors to position themselves for a price surge.
Looking at ADA’s price history shows this may just be a temporary setback before the next rally. A similar price action played out between 2019 and 2020 before the surge to new all-time highs in 2021.
Total crypto market cap currently at $2.29 trillion. Chart: TradingView
After breaking out of a consolidating channel in 2020, ADA went on a 75% surge and then corrected by 56% over three months. This correction was soon forgotten as ADA bounced up and went on an impressive 4,095% bull run to reach its current all-time high of $3.09.
As Martinez noted, a similar price action seems to be playing out. ADA recently broke out of a consolidating channel which played out for almost the entirety of 2023. This break above the channel saw ADA performing a 72% surge before its recent correction.
If history were to repeat itself, ADA might kickstart a parabolic run in May and push up to new highs in the coming months. Martinez predicted a 2,480% price surge to $9.98 within the next nine months.
History doesn’t repeat itself, but it often rhymes!
If that is the case for #Cardano, we should be positioning ourselves for what’s coming, understanding that the recent price correction might just be one of the last buy-the-dip opportunities $ADA will give you. pic.twitter.com/wlKs7fNhb8
— Ali (@ali_charts) May 3, 2024
What To Expect In Cardano’s Next Bull Run
It is important to note that the crypto market has evolved significantly since 2021 and crypto assets have become less volatile, especially during uptrends. Many things have to be put in place in order for a $9 ADA price to become a reality.
For instance, there needs to be a wider inflow and mainstream adoption of cryptocurrencies. According to crypto prediction website Telegaon, Cardano could reach the $9 price level by the end of the decade.
Martinez believes the recent price correction might actually be one of the last buy-the-dip opportunities for investors to get on ADA. At the time of writing, ADA is trading at $0.4638 and is down by 1% in the past 24 hours.
Featured image from Pexels, chart from TradingView