Cardano (ADA) has struggled to maintain the bullish momentum it experienced in recent weeks, with its price still trailing approximately 67% below its all-time high of $3.09, reached during the 2021 bull run.
Despite this significant gap, analysts believe that the potential for a robust price recovery exists in the coming weeks and months ahead of the new year.
Cardano Consolidates Above Key Moving Averages, Poised For Breakout
Trend Rider, a prominent analyst on the social media platform X (formerly Twitter), provided insights on Cardano’s current price action, noting that the price dipped below the parabolic line, indicating a cooling-off period, which occurred just above the $1 mark last week.
However, he emphasized that the Cardano price is consolidating above its moving averages, suggesting it is preparing for a potential breakout while “shaking out weaker hands.”
Trend Rider further anticipates a resumption of bullish momentum soon, forecasting that once the Cardano price breaks through the $1.25 resistance level, it could rapidly surge toward the $3 mark, inching closer to its previous record peak.
Adding to the optimistic outlook, analyst Ali Martinez pointed out that after experiencing a 44% correction, Cardano began its second leg up during the week of February 1, 2021.
Given that ADA has already undergone a 43% correction recently, the analyst suggests that the next upward movement for ADA could be just two to three weeks away, with a target of $6 in sight.
Analysts Identify Key Support And Price Targets
Another analyst, AV Sebastian, also weighed in, suggesting that the price recent dip may be over, and that the Cardano price is poised to break out of a triangular pattern. He highlighted the last two candles as particularly bullish and expects a significant rally in the coming days.
In analyzing short-term price actions, several analysts noted that ADA is exhibiting a “very bullish market structure” on the daily timeframe. On the chart is observed a double bottom formation leading to a breakout and a V-shaped recovery along a descending channel.
It is further believed that a retest of the key support zone at $1.3886 appears inevitable for ADA’s price in the near-term, which would then lead to price uptrend with a main target of $1.7748.
Further support zones have also been identified, with the $0.824 level being crucial to watch early in 2025. Holding this support could unlock significant upside potential, and analysts are eyeing May 2025 as a key timeframe for achieving targets.
At the time of writing, ADA was trading at $1.14, up 1.13% for the 24-hour period.
Featured image from DALL-E, chart from TradingView.com
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Ronaldo Marquez
https://www.newsbtc.com/news/cardano/expert-bullish-on-cardano-forecasts-explosive-rally-to-3-once-this-resistance-is-broken/
2025-01-22 12:00:35
