Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
According to crypto analyst Ali, Cardano (ADA), the eighth largest cryptocurrency by market cap, might be a candidate for a potential breakout based on its previous performance and patterns.
This prediction is based on the fact that ADA has followed a peculiar trajectory in the past and that it could repeat the same pattern in the future.
According to Ali, should the patterns seen for Cardano align and mirror its late 2020 price behavior, ADA can be anticipated to remain in a consolidation phase until April 2024, setting the stage for its next bull rally.
Cardano's historical pattern saw a consolidation pattern in late 2020 before its historic 3,217.49% leap to $3.06 in the year that followed.
If history repeats itself in the case of Cardano, Ali projects that ADA might continue in its range till April 2024 before breaking out and then surging 1,767.67% to a target price of $7.919.
The timing of Cardano's breakout coincides with the Bitcoin halving, which many estimate will occur in April 2024.
The fourth Bitcoin halving is predetermined to occur at block height 840,000, although the exact date is unknown due to the natural variability and probabilistic nature of mining blocks. A widely held date is April 23, 2024.
Tomiwabold OlajideRegarded as a bullish event, Bitcoin halving could have a significant impact on the crypto market. Historical data suggests that the Bitcoin halving tends to trigger a bullish 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 leading up to and following 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 outcomes. At the time of writing, ADA was down 2.58% in the last 24 hours to $0.506.
Alex Dovbnya
Vladislav Sopov
Dan Burgin