“If history repeats, ADA could stay in this consolidation phase until July 2024. [However,] barring unforeseen events like the COVID-19 crash, ADA could break out as soon as December!”— Ali Martinez (@ali_charts on X)
Notably, the 2018-2020 consolidation range for Cardano lasted 95 weeks, with a total registered volume of 88.218 billion ADA. However, the current trend is still in its 62nd week with a meaningfully lower volume of 5.025 billion ADA, 17 times lower than the previous cycle, for one-third of its time frame.
Nevertheless, Martinez believes that unless an “unforeseen event like the COVID-19 crash” takes place, ADA can break out of the consolidation range, seeking new highs.
Cardano (ADA) price analysis
Meanwhile, ADA is trading at $0.24 by press time, slightly losing 0.76% intraday. When looking at the consolidation phase mentioned by Ali Martinez, Cardano has traded as high as $0.45 per token, sitting in the lower spectrum of the range. ADA has lost close to 37% of its value year-over-year, from the $0.38 price 12 months ago.
Technically, ADA is positioned below its 200-day simple moving average, which typically indicates a bearish sentiment.
All things considered, multiple indicators are signaling good fundamentals for the mentioned “break out” from the current consolidation range. Among them, Cardano beats all crypto projects in September developer activity, as reported by Finbold on October 3.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.