After months of consolidation below the $1 mark, a cryptocurrency analyst projects that the decentralized finance (DeFi) token Cardano (ADA) is poised for significant upside.
Notably, this projection comes as ADA records positive growth in the short term. According to trading expert Alan Santana, Cardano could experience a staggering 2,222% rise, potentially reaching new all-time highs by 2025.
Santana’s analysis in a TradingView post on August 21 outlined Cardano’s journey since its peak in 2021. Following a prolonged bear market that saw ADA prices plummet, the cryptocurrency entered a period of consolidation throughout 2023. This phase, characterized by prices hovering within a tight range, has set the stage for a potential explosive breakout.
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According to Santana, Cardano is undergoing a “minor correction” within a larger bullish framework. This correction is viewed as a healthy retracement rather than a sign of weakness, positioning the market for a substantial “initial bullish breakout.” Santana referred to this breakout as an “appetizer” leading up to a primary bull market that could drive ADA to unprecedented levels.
Impact of Cardano 2,200 rally
With a potential rise of 2,200%, Cardano could reach around $8.50, significantly surpassing its all-time high.
Additionally, the expert highlighted several key resistance levels at $1 and $1.6, where traders might consider taking partial profits or reassessing their positions.
Should Cardano reach the $8.5 mark, it could have a market cap of approximately $300 billion, positioning it close to Ethereum (ETH), provided ETH experiences minimal movement.
Despite short-term gains, ADA is struggling to break into the top ten cryptocurrencies by market capitalization. It is worth noting that Cardano has faced challenges due to the emergence of Layer 2 solutions like Arbitrum and Optimism (OP), which offer significantly faster and cheaper transactions. As a result, developers and users are increasingly gravitating toward platforms that prioritize speed and cost-efficiency.
The prospects for Cardano also depend on ongoing network developments. ADA is experiencing bullish momentum following the announcement by platform developer Input Output of the Chang Hardfork upgrade, scheduled for August 27th, with a go/no-go decision expected by August 23rd.
The upgrade is anticipated to introduce a “liquid democracy with a constitutional republic,” allowing millions of ADA holders to access Cardano’s treasury to benefit all stakeholders.
ADA price analysis
As of press time, ADA was trading at $0.36, having rallied almost 5% daily and up 10% on the weekly chart.
For Cardano to maintain its current momentum, it will need to reclaim the $0.40 resistance level, with a long-term target of around $0.50.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk
