Cardano's Market Resembles 2020 Patterns, Fueling Predictions of a Potential Surge

Author : Elisabeth Louise | Published On : 22 Jan 2024

Cardano, currently exhibiting market consolidation reminiscent of its late 2020 pattern, is sparking speculation among analysts about an impending positive shift. Drawing parallels to its historical performance, where a significant consolidation phase was followed by a notable upward trend, Cardano might be poised for a similar trajectory in April.

Insights shared by Santiment, a platform offering on-chain and social metrics for cryptocurrencies, suggest that Cardano's price could initially surge to around $0.80. However, analysts anticipate a minor correction, with the value retracting to approximately $0.60, mirroring past fluctuations. This correction, though predicted to be brief, sets the stage for a more substantial increase in Cardano's value.

Looking at the long-term outlook, experts in the field are optimistic about Cardano's potential surge, foreseeing it reaching as high as $7 following the initial fluctuations. This positive projection is based on a combination of historical market analysis and current trading patterns, offering hope for investors and Cardano enthusiasts.

Despite its current range-bound trading between $0.49 and $0.59, reflecting a battle between market optimists and pessimists, recent developments indicate growing interest in Cardano. A remarkable 49% increase in the 24-hour trading volume, reaching $434 million, signifies heightened market participation and increasing investor fascination with Cardano. With a market capitalization of around $17 billion, Cardano holds the 8th position among cryptocurrencies, highlighting its rising stature and trust within the crypto community.

Analyzing indicators, the Moving Average Convergence Divergence (MACD) signals caution, with both the MACD line and the signal line aligning in a daily chart exhibiting a negative trend. A red histogram reinforces bearish undertones, emphasizing prevailing selling pressure. On the other hand, the Relative Strength Index (RSI) reads at 41, indicating a neutral market sentiment.