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Cardano’s ADA token has been in a period of consolidation for a while now, waiting for the next upward surge. Since March, its value has decreased by almost 10%, but looking back over the year, there has been an overall improvement, significantly influenced by a bullish market rise in March 2024. There is a growing sense of positivity about the token, as analysts are identifying strong buy signals that hint at a possible rally in the near future.
Recently, crypto analyst TradingShot forecasted a potential parabolic rally for Cardano ADA, using current technical indicators as the basis for this expectation. On Tuesday, TradingShot noted that Cardano had activated one of its most positive buy signals in almost a year. This signal is derived from the one-week Logarithmic Moving Average Convergence Divergence (1W LMACD), which has formed a bullish cross for the first time since October 2023. This long-term indicator is significant for traders looking for major price changes. It suggests that ADA could be preparing for a considerable price increase, indicating a possible shift in the momentum for Cardano’s native token.
Could Cardano’s Period of Consolidation Be Coming to an End with a Surge?
TradingShot highlighted that Cardano has been trading below its 50-week moving average (1W MA50) since May. Typically, consolidation phases lead to substantial breakouts, and Cardano seems to be approaching that moment. The one-week Relative Strength Index (RSI) for ADA has been moving within a specific range, which often indicates that investors are accumulating the asset. These indicators imply that Cardano may be poised for a breakout, with the only uncertainty being the timing of such a movement.
Currently, Cardano ADA is valued at $0.3833, showing a 14% rise in the past week. Over the last weeks, ADA has been slowly trending upwards, hinting that a rapid acceleration could occur soon. According to TradingShot’s evaluation, this mix of factors could pave the way for a parabolic surge, possibly aiming for a price target of $5.00 in this market cycle.
Even More Optimistic Predictions for ADA’s Future
Though the $5.00 target is seen as ambitious, some ADA supporters are even more optimistic about Cardano’s future. Dan Gambardello, a prominent analyst from the Crypto Capital Venture YouTube channel, has put forth an even more daring forecast. His review of weekly and daily charts indicates that ADA is on the verge of a major bullish reversal. He believes Cardano could see a significant breakout, potentially pushing its price to $31, which would mean an astonishing rise of about 8,500% from its current value.
Though Gambardello’s estimate may seem extreme, it reflects the increasing confidence and enthusiasm surrounding Cardano’s long-term prospects. If Cardano continues to forge ahead, it may sustain its momentum beyond the near term. While projecting $31 might sound implausible to some, the rising excitement among analysts and investors suggests a bright future for Cardano, with the possibility of reaching new heights in the coming years.