• Analysts predict a potential 70% rally for Cardano (ADA) due to a confirmed bullish pattern and increasing development activity.
  • Despite market downturns, ADA has shown resilience, with indicators suggesting further short-term gains.

Cardano (ADA) has recently shown a promising upward trend, rising by 4% this week alone. This has sparked discussions among analysts about a potential 70% rally in the near future, driven by a bullish pattern emerging on the charts.

Is It Time for ADA to Shine?

Despite a substantial drop in the value of leading cryptocurrencies over the past week and a 3.5% daily decline in global market capitalization, Cardano has managed to stay in the green on a seven-day scale. According to CoinGecko, the global market cap currently stands at approximately $2.35 trillion. Against this backdrop, Cardano’s recent performance stands out, with its price increasing by 4% over the past week.

One analyst, known as Captain Faibik on X, has pointed out that ADA’s “falling wedge breakout” has finally been confirmed after a prolonged period of consolidation. This pattern is typically seen as bullish and suggests a potential reversal in price trends. It is characterized by two downward-converging trendlines, with a breakout occurring when the price crosses the upper trendline. This breakout happened at the start of July, hinting at a possible 70% rally for ADA.

Another X user, XForceGlobal, shares a similarly optimistic outlook. This crypto educator believes there could be a significant shift from the meme coin narrative to “high-cap dino altcoins” in the coming months. This shift could lead to increased volatility for ADA’s price and potentially drive it up to nearly $3 by early 2025.

ADA is Gaining Momentum

Several indicators suggest that Cardano’s native token could indeed be poised for a significant uptick in the short term. The Relative Strength Index (RSI), which measures the speed and change of price movements, is currently at 51. This relatively low value indicates that ADA is not overbought, leaving room for further gains before any potential correction. An RSI over 70 typically signals a possible correction, which is not the case here.

Additionally, ADA has achieved a notable milestone in the crypto community. Market intelligence platform Santiment ranks Cardano among the top 10 cryptocurrencies in terms of development frequency. This recognition underscores the continuous efforts and progress being made within the Cardano ecosystem, which could further bolster investor confidence and drive future price increases.

While the broader cryptocurrency market has faced challenges, Cardano’s recent performance and emerging bullish indicators suggest that ADA could be on the verge of a significant rally. As always, potential investors should stay informed and consider all factors before making any investment decisions.

By vivian

Vivian Njoroge is a seasoned crypto and blockchain news writer with a passion for decoding the complexities of the digital financial world. Armed with a keen eye for emerging trends and a knack for simplifying intricate concepts, Vivian brings a unique blend of expertise and enthusiasm to her writing. Her articles, characterized by clarity and depth, aim to keep readers abreast of the ever-evolving landscape of cryptocurrencies and blockchain technology.