According to crypto analyst Ali, Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, could be a candidate for a possible breakout based on its past performance and patterns.
According to crypto analyst Ali, Cardano (ADA), the eighth-largest cryptocurrency by market capitalization, could be a candidate for a possible breakout based on its past performance and patterns.
This prediction is based on the fact that ADA has followed a peculiar trajectory in the past and could repeat the same pattern in the future.
According AliIf the patterns observed for Cardano align and reflect its late 2020 price behavior, ADA can be anticipated to remain in a consolidation phase until April 2024, setting the stage for its next bullish rally.
Cardano’s historical pattern experienced a consolidation pattern in late 2020 before its historical jump of 3,217.49% to $3.06 in the following year.
If history repeats itself in the case of Cardano, Ali projects that ADA could continue in its range until April 2024 before breaking out and then rising 1,767.67% to a price target of $7,919.
The timing of Cardano’s breakout coincides with the Bitcoin halving, which many estimate will occur in April 2024.
Bitcoin’s fourth halving is predetermined to occur at a block height of 840,000, although the exact date is unknown due to the natural variability and probabilistic nature of mining blocks. A widely celebrated date is April 23, 2024.
Considered a bullish event, the Bitcoin halving could have a significant impact on the cryptocurrency market. Historical data suggests that the Bitcoin halving tends to trigger a bull market cycle as it reduces the supply of new Bitcoins, thus increasing demand and scarcity.
As a result, the price of Bitcoin tends to rise in the months before and after the halving, and this also affects the prices of other cryptocurrencies, such as ADA.
It should be noted, however, that past performance does not guarantee future results. At the time of writing, ADA was down 2.58% in the last 24 hours to $0.506.
